David Kindness is a Certified Public Accountant (CPA) and an expert in the fields of financial accounting, corporate and individual tax planning and preparation, and investing and retirement planning.

Reviewed by Khadija Khartit Fact checked by Ariel Courage Earnings per share (EPS) is a common way of measuring the share of ...

Basic EPS doesn't account for the dilutive effects that convertible securities have on EPS. Dilutive effects occur when the number of shares increases such as through a new share issue.

In other words, a large portion of a company's dividend costs already may be reflected in the EPS number that most investors look at. Many times real estate investment trusts (REITs) and master ...