Earnings Per Share (EPS) and Dividends

EPS

Diluted EPS is calculated by dividing Net Income by the weighted average number of shares of common stock outstanding, including shares issuable upon exercise of stock options outstanding or vesting of restricted stock awards granted under PSEG’s stock compensation plans and upon payment of performance units or restricted stock units. The following table shows the effect of these stock options, performance units and restricted stock units on the weighted average number of shares outstanding used in calculating diluted EPS:




	Three Months Ended March 31,
	2018				2017
	Basic		Diluted		Basic		Diluted
EPS Numerator (Millions):
Net Income	$	558	$	558	$	114	$	114
EPS Denominator (Millions):
Weighted Average Common Shares Outstanding	504		504		505		505
Effect of Stock Based Compensation Awards	—		3		—		3
Total Shares	504		507		505		508

EPS
Net Income	$	1.11	$	1.10	$	0.23	$	0.22

For the three months ended March 31, 2017, there were approximately 0.3 million stock options excluded from the weighted average common shares used for diluted EPS due to their antidilutive effect.

Dividends




	Three Months Ended
	March 31,
Dividend Payments on Common Stock	2018		2017
Per Share	$	0.45	$	0.43
In Millions	$	227	$	218

On April 17, 2018, PSEG’s Board of Directors approved a $0.45 per share common stock dividend for the second quarter of 2018.