Does EPS refer to the same thing as Yield

[rapidex]

i.e: are they one and the same?

 

[Broadside]

i.e: are they one and the same?

yield refers to dividend: earnings per share (eps) > dividends per share (dps)

price / eps = PE ratio, dps / price = dividend yield

 

[doctorj]

Short answer, no.

Slightly less short answer:

There's a few different ways you can calculate EPS, but generally its the net income or profit (or profit of continuing operations) divided by the weighted average of shares on issue during the period.

Dividend yield is equal to the dividend paid during the period divided by the share price.

EPS and dividend yield are linked by the plowback ratio (the percentage of earnings retained by the company).

Wikipedia has more detailed explainations of each term.

 

[rapidex]

Thanks all - much appreciated.

 

[ROE]

EPS = Profit

Dividend = percentage of profit the board want to pay out to share holders
sometimes it's more sometimes it's less..
It's normally better if they dont payout if they can use that money and get a better return on the money, hence the capital appreciation in your share price
and you dont pay tax until you sell it...compound effect...so you end up with more $$$ in the long run.

some dodgy company like Telstra pay out dividend more than their EPS. In this case they take on extra debt to fund it...stupid way to run a business if you ask me.

 

[bvbfan]

earnings per share (eps) > dividends per share (dps)/quote]

Not always, you could have companies paying out profits from retained earnings while they are running at a loss.

Also you could have a accounting charge which reduces EPS while the dividend stays the same

So the EPS > DPS is not always correct