Meaning of dividend cover in English:

dividend cover


  • The ratio of a company's net profits to the total sum allotted in dividends to ordinary shareholders.

    ‘Sure, they upped the payout in 2002 by 250% to 1.5p per share, but the dividend cover still remains nearly five times.’
    • ‘This is another financial institution where falling equities have put pressure on dividend cover and the balance sheet.’
    • ‘The company's earlier forecast for a 10% dividend increase should remain intact though, given dividend cover of over three times in 2003.’
    • ‘Perhaps the only worry for prospective shareholders would be the company's dividend cover, it being a slightly low 1.5.’
    • ‘Redrow shares are on a p/e ratio of 7 and a yield of 3.1% with a dividend cover of over 6.’
    • ‘The earnings and dividend cover will come under significant pressure.’
    • ‘Net debt of £145m and the wafer thin dividend cover suggest the share's 12% yield is more than dubious.’
    • ‘Improved profitability and increased dividend cover is enhancing the internal generation of equity.’
    • ‘And with dividend cover of 6.5 times, retentions are high, leaving the company with plenty of scope to fund expansion and acquisitions internally.’
    • ‘Doubts about retail sales in the United States have yet to be overcome, but last year's dividend cover was 1.7.’
    • ‘Although both interest and dividend cover measures are likely to be rather thin this year, the decent yield should underpin the valuation.’
    • ‘Shareholders will receive an increased dividend payout as we move to bring dividend cover in line with market norms.’