the number of times that a company's dividends to shareholders could be paid out of its annual profits after tax, used as an indication of the probability that dividends will be maintained in subsequent years
dividend cover in Finance
(dɪvɪdɛnd kʌvər)
noun
(Finance: Corporate)
A company's dividend cover is the number of times that its dividends could be paid out of its annual profitsafter tax.
With falling profits, analysts worry that the firm's dividend cover is slim.
Dividend cover provides an indication of the company's present capacity to repeat the most recentdividends.
A company's dividend cover is the number of times that its dividends could be paid out of its annual profitsafter tax.
dividend
Examples of 'dividend cover' in a sentence
dividend cover
Dividend cover is a very useful index as it provides the investor with details of the extent to which retained earnings have exceeded the dividend allocation.
Croft, James Corporate Cloak and Dagger (1994)
The company has now said that these more reliable earnings can be included when it considers dividend cover, which is a positive long term.
Times, Sunday Times (2015)
She emphasised that Alliance had two years' worth of dividend cover in its reserves.