Definition of dividend cover in English:
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.