Dividends announced during the period ÷ the number of shares on issue is the formula for:
A) the dividend payout ratio.
B) the dividend yield ratio.
C) the dividend per share ratio.
D) the return on dividends ratio.

Question

Quizplus · Accepted Answer

This formula calculates the dividend per share ratio, which is the amount of dividends paid for each share of a company's stock. The dividend payout ratio measures the percentage of earnings paid out as dividends, while the dividend yield ratio measures the return on investment from dividends. The return on dividends ratio is not a commonly used financial ratio.

Dividends Announced During the Period ÷ the Number of Shares