Diluted EPS

Diluted EPS is earnings per share calculated after reflecting potentially dilutive securities under the applicable accounting rules.

Why this matters to income investors

Potential new shares can reduce the earnings attributable to each existing share.

How to use diluted eps in your research

Confirm the accounting basis, share count, and period before comparing figures. Trace material changes to the company’s reported results and ask whether they reach the earnings measure it uses to explain its dividend.

This material is general education and information, not individualized investment, tax, or legal advice.