dividend cover
Definition
Measure of a firm's ability to pay its dividend. Higher the cover, the greater the possibility of earning the dividend and greater the chance of an even higher amount. Formula: After-tax profit ÷ Expected (declared) dividend. See also payout ratio
dividend cover is in the Accounting & Auditing, Banking, Commerce & Finance, Investing and Securities & Futures Trading subjects.
dividend cover appears in the definition of the following term: payout ratio
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