I want to know what is the difference between
Earnings per share vs Dividend per share.
For example, let us take Reliance Industries Ltd balance sheet which can be found here on myiris.com.
http://myiris.com/shares/company/financial.php?cSelect=3&icode=RELINDUS
Book Value Per Share (Rs) 667.70 (31-Mar-2009) 526.40 (31-Mar-2008)
Earnings Per Share (Rs) 97.30 (31-Mar-2009) 134.20 (31-Mar-2008)
Dividend Per Share (Rs) 12.10 (31-Mar-2009) 11.20 (31-Mar-2008)
Can someone please explain:
1) If company have earning of rs.97.3 per share then why it issued only Rs.12.10 as dividend, where is the remaining Rs.109.4 profit?. Is it adjusted in book value of share?
2) If we consider current market value of stock which is Around Rs.1000 then it returned only 1.2% dividend on market price then why research companies are valuating stock at 10PE rather then 100PE? (actual dividend?)
I am confused, please suggest.
Earnings per share vs Dividend per share.
For example, let us take Reliance Industries Ltd balance sheet which can be found here on myiris.com.
http://myiris.com/shares/company/financial.php?cSelect=3&icode=RELINDUS
Book Value Per Share (Rs) 667.70 (31-Mar-2009) 526.40 (31-Mar-2008)
Earnings Per Share (Rs) 97.30 (31-Mar-2009) 134.20 (31-Mar-2008)
Dividend Per Share (Rs) 12.10 (31-Mar-2009) 11.20 (31-Mar-2008)
Can someone please explain:
1) If company have earning of rs.97.3 per share then why it issued only Rs.12.10 as dividend, where is the remaining Rs.109.4 profit?. Is it adjusted in book value of share?
2) If we consider current market value of stock which is Around Rs.1000 then it returned only 1.2% dividend on market price then why research companies are valuating stock at 10PE rather then 100PE? (actual dividend?)
I am confused, please suggest.