dividend cover ratio

dividend cover ratio

or

times covered ratio

a measure of the extent to which a firm's earnings cover DIVIDEND payments on SHARES that expresses PROFIT after tax and interest charges as a ratio of total dividend payments. For example, if a firm's profit after tax were £100,000 and its dividend payments were £50,000, then its dividend cover ratio would be 2:1.
References in periodicals archive ?
The dividend cover ratio is a measure of how affordable dividends are.
The ten ratios that were used for conducting firm performance analysis included Acid Test Ratio, Financial Expenses as Percent of Sales Ratio, Current Ratio, Debt to Equity Ratio, Return on Assets Ratio, Return on Equity Ratio, Dividend Cover Ratio, Net Profit Margin Ratio, Earnings per Share after Tax Ratio, and Break-Up Value Shares Ratio.