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. For additional information on PSEG’s stock compensation plans see Note 19. Stock Based Compensation. 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:




	Years Ended December 31,
	2018				2017				2016
	Basic		Diluted		Basic		Diluted		Basic		Diluted
EPS Numerator:
(Millions)
Net Income	$	1,438	$	1,438	$	1,574	$	1,574	$	887	$	887
EPS Denominator:
(Millions)
Weighted Average Common Shares Outstanding	504		504		505		505		505		505
Effect of Stock Based Compensation Awards	—		3		—		2		—		3
Total Shares	504		507		505		507		505		508
EPS:
Net Income	$	2.85	$	2.83	$	3.12	$	3.10	$	1.76	$	1.75

There were approximately 0.4 million stock options excluded from the weighted average common shares used for diluted EPS due to their antidilutive effect for the year ended December 31, 2016.

For additional information on all the types of long-term incentive awards, see Note 19. Stock Based Compensation.

Dividends




	Years Ended December 31,
Dividend Payments on Common Stock	2018		2017		2016
Per Share	$	1.80	$	1.72	$	1.64
in Millions	$	910	$	870	$	830

On February 19, 2019, PSEG’s Board of Directors approved a $0.47 per share common stock dividend for the first quarter of 2019.