Dividend Coverage

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Dividend Coverage

The amount by which a company's earnings exceed its dividends. The higher a company's earnings are relative to its dividends, the better its dividend coverage and the more flexibility the company has. A company with good dividend coverage has the option to raise the dividend if it wishes and likewise may still pay the same dividend with little difficulty if earnings decline. Maintaining adequate dividend coverage is especially important if the company has issued a lot of preferred stock, which carries guaranteed dividends.

dividend coverage

The extent to which a firm's net income supports the company's total dividend payments. For example, a utility earning $5.00 per share and paying a dividend of $4.79 per share has relatively weak dividend coverage. Poor coverage permits a firm's management to enjoy less flexibility to raise dividends or to keep them at the same level in the event that earnings decline. See also preferred dividend coverage.

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Coverage Ratio Payout Ratio Preferred Dividend Coverage Preferred Dividend Coverage Ratio Preferred Stock			The improvement of our debt structure provides cash for acquisitions, capital improvements and dividend coverage. AFR closes on $180m refi by Real Estate Weekly The cash dividend coverage ratio provides evidence of the ability to meet current dividends from normal operating cash flow. Developing ratios for effective cash flow statement analysis by Mills, John R. / Journal of Accountancy During the second and third quarters of 2009, CNAF's interest and dividend coverage ratios again improved to satisfactory levels. A.M. Best Assigns Debt Rating to CNA Financial Corporation's ... by Business Wire			Diversified Investment Company diversified management company Diversify Diversity Score Diversity Segmentation Divestiture Divida Divida a curto prazo Divida a longo prazo Divida com bancos Divida consolidada Divida externa Divida flutuante Divida garantida Divida incobravel Divida privilegiada Divida subjacente Divida subordinada Divided Account divided interest Dividend Dividend Adjustment Dividend Capture Dividend Clawback Dividend Clientele Dividend Coverage Dividend Disbursing Agent Dividend Discount Model Dividend Discount Return Dividend Distribution Dividend Enhanced Convertible Stock Dividend Equivalent Right Dividend Exclusion Dividend growth model Dividend Imputation Dividend in Arrears Dividend Income Dividend Limitation Dividend Order Dividend Payable Dividend Paying Agent Dividend Payment Date Dividend Payout Ratio Dividend per Share Dividend Period Dividend Policy Dividend rate Dividend Record Dividend Reinvestment Plan Dividend Requirement Dividend Right			Divided We Fail Divided Word-Line Divided-light window Divided-light window Divided-light window Divided-light window Divided-light window dividedly dividedly dividedly dividedness dividedness dividedness dividend dividend dividend dividend dividend dividend dividend adjustment Dividend Adjustments Dividend Arrears Dividend capture dividend check dividend checks Dividend clawback Dividend Clawbacks Dividend clientele dividend coupon dividend cover Dividend Coverage dividend covers Dividend Disbursing Agent Dividend Disbursing Agent Dividend Disbursing Agents Dividend Discount Model Dividend Discount Model Dividend Discount Model Dividend Discount Return Dividend Discount Returns Dividend distribution Dividend distribution tax Dividend Distributions Dividend Enhanced Convertible Stock Dividend Enhanced Convertible Stocks Dividend Equivalent dividend equivalent right Dividend Equivalent Rights Dividend Equivalent Rights dividend exclusion Dividend Exclusions Dividend growth model Dividend growth model Dividend imputation Dividend Imputations Dividend in arrears Dividend income Dividend Incomes Dividend Index of Europe, Far-East Asia, and Australasia Dividend limitation

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