What does earnings per share indicate?

First, earnings per share (EPS) is a calculation of a company's net profit divided by the number of common shares it has outstanding.

Indeed, the higher the EPS, the greater value for investors because it is posting better profits.

When it comes to dividend investing, the company could maintain dividend growth that is more than its EPS.

You could also determine the dividend payout ratio by calculating dividends per share by earnings per share.