Ann: Arrowsmith North BFS and Maiden Ore Reserve, page-145

in theory. so the eps is just the number of free cash per each share on issue. sometimes companies elect to pay 100% as a dividend, but rarely. so there will be a difference between the eps $ and the dividend $ distribution more often than not as the money held back allows the company to invest in operations, expansions or acquisitions.

so imagine a company that has 2 shares on issue and generates $5 eps (total free cash of $10) ... company elects to pay a $3 dividend (total $6) and invest the remaining $4 into operations improvements. in theory the money reinvested should ensure dividends are bigger the following year.