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 ?
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.
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.
Besides, the Dividend Cover Ratio (0.0 coefficient) was excluded from the regression analysis equation of firm performance score ([F.sub.PS]) model.
The group reckons it can achieve these targets while maintaining a dividend cover around its established range.
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.
The interim dividend has been reduced to 0.75p from 1.5p, in line with the group's dividend cover policy..
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).
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.
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
Working to keep dividend cover within the expected range of around 1.2- 1.4 times, although it is likely to be towards the bottom of this range, as stated in SSE's Notification of Pre Close Statement on 30 March 2017, and again in its full year 2016/17 Results; and