EPS vs DPS


EPS stands for Earning Per Share, which can be calculated by dividing the total earnings (profits) of a company (after tax) by total shares of a company. DPS stands for Dividend Per Share, which is the percentage of EPS that companies pay to shareholders. DPS percentage varies between companies and depends on the company's policies.

EPS

Projected EPS is the profit that a company expects to make by the end of the fiscal year. Companies announce the projected EPS at the beginning of the fiscal year. This value is predicted by the experts, based on the company's past performance. The projected EPS can be used as one of the indicators of the current price of the company's share. EPS is one of the tools used for Fundamental Analysis of stock prices.


DPS

Most of the time, the DPS values are smaller compared to EPS values because companies keep some of the profit for themselves. Companies keep some of their profits for business development and other activities and distribute the rest between shareholders. However, there are cases that DPS exceeds EPS values when the company distributes some profit from previous years in addition to its profit in the current fiscal year. In the end, the DPS and its distribution policies depend on the company's policies.