dividend cover


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Related to dividend cover: Dividend yield, Dividend Per Share, dividend cover ratio, Earnings per share, Interest Cover, Price Earnings Ratio

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.