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**Calculating DPS from the Income Statement**

- Figure out the net income of the company. …
- Determine the number of shares outstanding. …
- Divide net income by the number of shares outstanding. …
- Determine the company’s typical payout ratio. …
- Multiply the payout ratio by the net income per share to get the dividend per share.

## How do you calculate dividends paid?

Dividend Yield Formula

To calculate dividend yield, all you have to do is **divide the annual dividends paid per share by the price per share**. For example, if a company paid out $5 in dividends per share and its shares currently cost $150, its dividend yield would be 3.33%.

## How do you calculate cash dividends declared on common stock?

For common stock dividends, **take the number of shares outstanding and multiply it by the per-share dividend for each quarter**. Add the four quarterly figures up and you’ll have total cash dividends paid for the year.

The dividend yield ratio is calculated using the following formula: **Dividend Yield Ratio = Dividend Per Share/Market Value Per Share**. In the simplest form of calculation, you can take the amount of dividend per share and divide it with the market value per share to get the dividend yield ratio.

## What is dividend formula?

The formula to find the dividend in maths is: **Dividend = Divisor x Quotient + Remainder**. Usually, when we divide a number by another number, it results in an answer, such that; x/y = z. Here, x is the dividend, y is the divisor and z is the quotient.

## How do dividends work in stocks?

**What Is a Dividend and How Do They Work?**

- Dividends are payments a company makes to share profits with its stockholders. …
- A dividend is paid per share of stock — if you own 30 shares in a company and that company pays $2 in annual cash dividends, you will receive $60 per year.

Dividend per share (DPS) is **the sum of declared dividends issued by a company for every ordinary share outstanding**. DPS is calculated by dividing the total dividends paid out by a business, including interim dividends, over a period of time, usually a year, by the number of outstanding ordinary shares issued.