Dividend Cover

What is the definition of Div Cover?

Dividend cover is the ratio of company's net income over the dividend paid to shareholders, calculated as earnings per share divided by the dividend per share. It helps indicate how sustainable a dividend is. Dividend Cover of less than 1.5 may indicate a danger of a dividend cut while more than 2 is viewed as healthy. The inverse of dividend cover is the Payout Ratio.


Stockopedia explains Div Cover...

As we define the Dividend from the Cashflow statement, that means that it's a negative cash-flow item so the Dividend Cover is negative and so is the Payout Ratio, so it's important to be aware of this when screening