Measures the amount of money shareholders receive per share. It is calculated by dividing the total amount of dividends declared (or paid) by directors, with the number of shares issued, and is expressed as amount per share eg X pence per share. NB The ratio is usually only applied to ordinary shareholders as preference shareholders receive a fixed dividend, (eg the holder of £1,000 worth of 10% preference shares will receive £100 every year). Whether the amount of dividend per share is high or low can only be judged in relation to other companies in the same sector of the market and / or previous year’s figures. Obviously the higher the amount the better the investment / potential investment.