Are Earnings per Share and Dividends the Same?

Earnings per share and dividends per share are both reflections of a company's profitability. Earnings per share is a gauge of how profitable a company is per share of its stock. Dividends per share, on the other hand, measures the portion of a company's earnings that is paid out to shareholders.

Is dividend included in EPS?

No, dividends are not included in earnings. Companies with no earnings sometimes choose to pay dividends. Paying the dividend does not decrease earnings. It does of course decrease cash and shows up on the balance sheet.

What is the difference between EPS and ROE?

Return on equity and earnings per share are profitability ratios. ROE measures the return shareholders are getting on their investments. EPS measures the net earnings attributable to each share of common stock.