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
Mentioned in these definitions
Popular 'Accounting & Auditing' Terms
dividend cover in the news
Loading...
This content can be found on the following page:
http://www.businessdictionary.com/definition/dividend-cover.html
