MARKETS / GLOSSARY / DIVIDEND COVERAGE

Dividend coverage

How many times over the year's earnings covered the dividend paid. Two times means half the profit went out and half stayed.

Definition

How it is computed here

Formulaearnings per share ÷ dividend per share
UnitMultiple (×)
PeriodOne fiscal year, as reported
SourceExtracted from SEC filings; every value on an asset page carries the accounting tag and the filing it came from
Identifiercobertura_do_dividendo
The limit

What this number does not tell you

Coverage is the inverse of the payout ratio and inherits its blind spot: it measures accounting profit, not the cash that actually funds the payment. It also says nothing about whether the earnings repeat.

Every metric on this site is published with its blind spot stated. A figure without its limit is half a fact.

Advertisement
AdSense · Leaderboard 728×90 · responsive
In the data

Highest reported dividend coverage

From the most recent fiscal year of each company.

Related

Read next