1. What is Dividends Per Share (DPS)?

Dividends Per Share (DPS) is a financial ratio that measures the amount of dividends distributed to shareholders for each share of stock they own. It's an important metric for investors evaluating the income potential of their investments in Malaysian companies.

2. How Does the Calculator Work?

The calculator uses the DPS formula:

Where:

• \( Total\ Dividends \) — Total dividend amount distributed by the company (RM)
• \( Shares \) — Total number of outstanding shares

Explanation: The formula divides the total dividend payout by the number of outstanding shares to determine how much dividend income each share receives.

3. Importance of DPS Calculation

Details: DPS is a key indicator of a company's profitability and its commitment to returning value to shareholders. In the Malaysian market, consistent or growing DPS often signals financial health and stable management practices.

4. Using the Calculator

Tips: Enter the total dividend amount in Malaysian Ringgit (RM) and the total number of outstanding shares. Both values must be positive numbers (dividends ≥ 0, shares ≥ 1).

5. Frequently Asked Questions (FAQ)

Q1: What is a good DPS for Malaysian companies?
A: A "good" DPS varies by industry and company size. Generally, consistent or increasing DPS over time is positive. Compare with industry peers for context.

Q2: How often do Malaysian companies pay dividends?
A: Many Malaysian listed companies pay dividends quarterly or semi-annually, though some may pay annually. The frequency is determined by the company's dividend policy.

Q3: Does DPS include special dividends?
A: Yes, DPS calculations should include all dividend payments - both regular and special dividends - during the measurement period.

Q4: How does DPS relate to dividend yield?
A: Dividend yield is calculated as DPS divided by the current share price, expressed as a percentage. It shows the return on investment from dividends alone.

Q5: Are dividends taxable in Malaysia?
A: For Malaysian residents, single-tier dividend system means dividends are tax-exempt in the hands of shareholders as tax is paid at the corporate level.