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Dividend cover |
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Dividend coverThe ratio between a company's earnings (net profit after tax) and the net dividend paid to shareholders, calculated as earnings per share divided by the dividend per share.So if a company has earnings per share of 8p and it pays out a dividend of 2.1p, the dividend cover is 8 / 2.1 = 3.80Generally speaking, a ratio of 2 or higher is considered safe (in the sense that the company can well afford the dividend), but anything below 1.5 is risky. If the ratio is under 1, the company is using its retained earnings from a previous year to pay this year's dividend.Similar MatchesExpected dividend yieldExpected dividend yieldTotal amount of dividends received during the life of a futures contract or total dividends received for holding a particular stock one year. See: Current yield. Liquidating dividendLiquidating dividendPayment by a firm to its owners from capital rather than from earnings. Selling dividendsSelling dividendsInducing a prospective customer to buy shares in order to profit from a dividend scheduled in the near future. Cumulative dividend featureCumulative dividend featureA requirement that any missed preferred or preference stock dividends be paid in full before any common dividend payment is made. Dividend Discount ReturnDividend Discount ReturnThe rate of return which equates the present value of future expected dividends with the current market price of a security. Further SuggestionsWith dividenddividend growth Dividend policy accumulated dividend Perfect market view (of dividend policy) income dividend Dividend distribution Indicated dividend Outstanding Dividends Dividend Ex stock dividends dividend reinvestment plan Stock dividend passed dividend Ex dividend Dividend Discount Model (DDM) scrip dividend Dividend clientele Dividend Order interim dividend Dividend clawback Income dividend Dividend payout ratio Year end dividend Dividend requirement |
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