👉 Dividend math refers to the calculation of dividends, which are portions of a company's profits distributed to its shareholders. The process typically involves dividing the total net income (after taxes) by the number of outstanding shares to determine the dividend per share. For instance, if a company has $1 million in net income and 10 million shares outstanding, the dividend per share would be $100 ($1,000 / 10,000,000 shares). Companies often pay dividends based on their financial health and growth prospects, and the dividend amount can be fixed or variable, with some companies offering quarterly or annual payments. Dividend yield, calculated by dividing the annual dividend per share by the stock price, also plays a crucial role in assessing a company's dividend attractiveness.
