Cash Dividends Per Share Definition and Explanation

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Quick Definition

The amount paid out per single share of ownership in a company.

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Explanation of Cash Dividends Per Share

Also called simply Dividends, or Dividends Per Share, this value is the amount the company plans to pay out for each share of stock. Well-established companies will often be the ones offering higher dividends, as their stock price is not as likely to appreciate and they need to offer dividends to entice potential investors to buy their stock.

Importance of Cash Dividends Per Share

Cash Dividends Per Share is useful to watch over time. Dividends that are consistantly rising may point to a company that is moving past an aggessive growth phase and into one of more stable and predictable growth. If you notice the Cash Dividends Per Share dropping or outright cancelled for a reporting period, it would be wise to look further into the financial statement notes to learn why.