2018 2019 2020

Total Dividend Paid 502757959 504483537 601957017

Earnings per share 6.25 7.48 8.67
Return on Equity 0.093 0.102 0.108
Share Price 93.9 83.5 69.2
Dividend per Share 1.23 1.24 1.48
Dividend Yield 0.123 0.124 0.148

X  Total Earnings per Return on Share Price Dividend Dividen

Dividen share Equity per d Yield
d Paid Share

Total 1
Dividend
Paid
Earnings per 0.86884 1
share
Return on 0.81192 0.994448642 1
Equity
Share Price -0.9141 -0.99495894 -0.978883466 1
Dividend per 0.9998 0.878631257 0.823509542 - 1
Share 0.922087313
Dividend 0.9998 0.878631257 0.823509542 - 1 1
Yield 0.922087313

Here, the total dividend paid has positive correlation (0.86884) with earnings per share; that
means profitability of the company is good. Dividend is the distribution by a company to its
shareholders, of part or all of its profits. EPS is the net profit earned by the company, per
outstanding equity share. Both indicates positive strong effect on shareholders income.
ROE can affect the dividend policy and stock price Dividend payments will impact the net
shareholder equity on the balance sheet and will influence the ROE figure. When a business pays
dividends, its retained earnings will decline. Since retained earnings is added to the paid-in
capital to calculate the total shareholder equity, dividend payments will reduce the total
shareholder equity on the balance sheet. In sum, dividends reduce shareholder equity and boost
ROE. That’s why ROE & dividend paid has strong positive relation of (0.81192). The correlation
among ROE, dividend per share and dividend yield are strong positive. (0.823509542).
Companies pay dividends to distribute profits to shareholders, which signals corporate health and
earnings growth to investors. Because share prices represent future cash flows, future dividend
streams are incorporated into the share price, and discounted dividend models can help analyze a
stock's value. After a stock goes ex-dividend, the share price typically drops by the amount of the
dividend paid to reflect the fact that new shareholders are not entitled to that payment. Dividends
paid out as stock instead of cash can dilute earnings, which can also have a negative impact on
share prices in the short term. That’s why dividend paid and share price have strong negative
correlation (-0.9141). This also has similar effect in share price & dividend per share / dividend
yield (-0.922).
Dividend per share (DPS) is the sum of declared dividends issued by a company for every
ordinary share outstanding. The dividend yield, expressed as a percentage, is a financial ratio
(dividend/price) that shows how much a company pays out in dividends each year relative to its
stock price. Both indicator has same numerator total dividend paid, results in strong positive
correlation of (0.9998).
EPS is the net income divided by the weighted average number of common shares issued and
ROE is net income divided by average shareholders' equity expressed as a percentage. Both has
strong positive relation (0.9944)
The reasons of why the EPS is not working on the track means that the share price is not moving
on the same way that the EPS goes. But the fact we observed by our analysis that shows the
opposite or reverse result. So that there must be some reasons that affect the share price
movement. Mostly in the country like USA and some other developed countries, shows positive
movement of the EPS and share price like increasing at the increasing rate as well as decreasing
the decreasing rate. And these prices are automatically adjusted on behalf of very short of time.
But the problem is with some developing countries capital market. It takes time to adjust the
price on behalf of the EPS. So that other developing country like ours also has this problem. The
reasons behind this strong negative correlation (-0.99495894) can be macro and micro economic
factors, director’s role, other company’s factors.