Entry from US English dictionary
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
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