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.
References in periodicals archive ?
Improved dividend cover is mainly a result of around GBP215 million of revenue under-recoveries at Southern Water for AMP5, which have been returned to the company through a revenue correction mechanism.
Working towards achievement of dividend cover within a range of around 1.
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.
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).
The group said dividend cover for the next financial year would be "towards the bottom" of the expected range of around 1.
Companies paid out more in dividends than they made in profit, bringing dividend cover down by 38 per cent, from 1.
Standard Life Investments said that the proposed portfolio is also expected to enhance the company's dividend cover.
5% (the highest for three years), dividend cover was 2.
It is seen to be earnings accretive in the first full year and speed up the return to full dividend cover, the company added.
He added "We are looking to not only have a progressive dividend policy, but also increase our dividend cover.