The ratio of a company’s dividends to its net income.
- The cash dividend coverage ratio reflects the company's ability to meet dividends from operating cash flow.
- The dividend coverage ratio, on the other hand, measures the company's ability to pay its stated dividend.
- Senior officers may speak to the dividend policy and dividend coverage and earnings payout ratios.
For editors and proofreaders
Syllabification: div·i·dend cov·er·age
What do you find interesting about this word or phrase?
Comments that don't adhere to our Community Guidelines may be moderated or removed.