Definitions for **"Dividend cover"**

How many times over an year's dividend could have been paid out of the year's profits.... more on: Dividend Cover

The number of times that the profit after tax covers the dividend amount. It is calculated by dividing profit by dividend.

A ratio showing the number of times a company's dividend is covered by its net profit. Dividend Cover ratio = (Net profit / Dividend paid) A low dividend cover points to a company paying out most of their net profit, while a high cover suggests much of the profit is being retained.

Extend to which a company's dividend and/or interest disbursement is matched or exceeded by its earnings. Expressed as a multiple. The company's rating in the market increases as the multiple rises.

The ratio of profits distributed as dividends to total profits. It gives an indication of the company’s dividend policy and on the likely distribution of future dividend payments. Français: Couverture du dividende Español: Cobertura de dividendos

An accounting ratio defined as net earnings per share divided by net dividend per share. The purpose of the ratio is to identify how much of a company’s profits are being distributed to shareholders and how much is being retained to finance future expansion of the business. Generally a company with a low dividend cover is paying out most of its earnings as dividends and is unlikely to achieve high growth in the future, compared to a company with high dividend cover.

This is a ratio which measures the number of times that a dividend could have been paid out of the year's earnings. The higher the dividend cover the 'safer' the dividend.

Earnings per share divided by dividend per share indicates the number of times the profits attributable to the equity shareholders cover the actual dividends payable for the period.

Number of times a company's most recent net dividend to shareholders could be paid out of its annual earnings (profits after tax).

Adjusted diluted EPS, divided by the dividend per share.

the number of times the amount of dividend paid by a company is covered by its earnings. Calculated by dividing the net profit by the amount paid in dividends.

The number of items a company's annual dividend could be paid out of current net earnings.

The extent to which the dividend per share is covered by the net earnings per share.

The number of times the dividend is covered by the earnings. For an example earnings of 10 cents per share and a dividend of 2 cents gives a cover of five times.

Number of times dividend charge in the profit and loss account is covered by profit after tax

A company's ability to pay ordinary dividends to shareholders out of profits earned and is calculated by dividing the basic Earnings Per Share (EPS) by the total dividend per share.

The extent to which a firm's net income supports the company's total dividend payment.

Company's total earnings (profits) divided by the total paid in dividends. Used as an indication of the company's ability to maintain its dividend payout.

earnings per share divided by dividends per share indicating how much of the profit is being paid out to shareholders or how little profit is being reinvested in the company. Cover of less than one indicates that the company is dipping into reserves to keep up dividends

Earnings per ordinary share divided by dividends per ordinary share.

Profit attributable to shareholders/net income divided by dividends payable to shareholders.

The number of times a companyâ€™s available profits cover the money needed to pay dividends. It indicates the amount of spare cash flow a company has and therefore how safe a dividend might be. A ratio of two or more is considered comfortable, whilst a ratio below one and a half times is seen as risky.

The number of times a company could pay its most recent net dividend out of its net profit (profits after tax).

Dividend cover takes into account all aspects of trading, tax and finance, from the ordinary shareholders' point of view. Dividend cover can also be calculated using cash flow in place of profit. Dividend Cover = Profit attributable to shareholders Dividends

The indicator as to the rate that the company may be paying its dividends out of its earnings, and its ability to continue to pay dividends at that rate.

The number of times a company could pay its recently declared dividend out of its profit after tax.

The number of times a company's after-tax earnings would pay the dividend. For example, a company with earnings of 20p per share and a dividend of 10p would have dividend cover of 2 times.

Underlying profit after tax from continuing operations attributable to equity shareholders divided by total dividends declared during the year.

Underlying EPS divided by Dividend per ordinary share.