Financial

dividend cover

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dividend cover

or

times covered

a measure of the extent to which a firm's earnings (profit after tax and interest) cover DIVIDEND paid, which expresses PROFITS as a multiple of dividends paid. Thus, for example, if a company pays out one quarter of its profit as dividends, then the dividend cover ratio is four. The dividend ratio is the mirror image of the DISTRIBUTION RATIO.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
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References in periodicals archive
For example, McGarry points out that Centrica has a dividend cover of 0.9, meaning that its profits only cover 90 per cent of its dividend.
THE DIVIDEND DANGER-ZONE; Despite record payouts, cover is getting worryingly thin, warns
It is the second consecutive year that dividend cover has weakened and dividends have now exceeded profits for five consecutive quarters, the longest run since at least 2008.
BEWARE COMPANIES WITH A HIGH YIELD AND LOW DIVIDEND COVER
Besides, the Dividend Cover Ratio (0.0 coefficient) was excluded from the regression analysis equation of firm performance score ([F.sub.PS]) model.
Analysis of firm financial performance models in construction industry
The group reckons it can achieve these targets while maintaining a dividend cover around its established range.
Savers' saviour; Jeremy Gates reports on inflation-hit savers stepping up the search for index-linked certificates
Dividend cover which can be deduced from the relationship between free cash flow and the per-share dividend rate--has developed in disparate ways in the recent past.
Put your money on sustainable dividends--with swiss blue chips: as the global economy stabilises from the turmoil of recent years, the Swiss blue-chip corporate sector is in good shape, offering shareholders opportunities for healthy and sustainable returns on their investments. Let's learn more
easyJet intends to start paying an annual dividend based on a dividend cover of five times, with the first payout made in 2012 in respect of the year ending 30 September 2011.
easyJet to start paying dividends; reports net profit of GBP121.3m
* Dividend cover = earnings per share/dividend per share.
Financial strategy: Andrew Howarth recommends ways to approach a question requiring performance analysis--a cause of problems for many candidates
The interim dividend has been reduced to 0.75p from 1.5p, in line with the group's dividend cover policy..
Switch of strategy starts to pay off as PR group Freshwater rides out downturn; MEDIA
He said he expected shareholder support for the dividend cut, which would "free up more cash within the business" by increasing the dividend cover to three times (where the dividend is kept to one third of the value of the earnings).
Stadium bright spark
DIVIDEND COVER Rebecca O'Keeffe says: "When it comes to yield, it's important to assess whether a company can deliver what it says on the tin and is not overstretching itself - which can not only compromise shareholder dividends, but compromise long term growth prospects, too - double trouble for investors.
DIVIDEND DILEMMAS: DOING YOUR HOMEWORK IS MORE IMPORTANT THAN EVER; ADVERTISEMENT FEATURE Jemma Jackson looks at the warning signs investors should look out for and how to prevent possible problems
We may revise the Outlook to Stable if Anglian Water and its holding company Osprey materially reduce regulatory gearing and dividend cover is sustained above 3.0x throughout the AMP6 and AMP7 price controls
Fitch Revises Outlook on 3 UK Water Holding Companies to Negative
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