IN PLAIN ENGLISH
Earnings per share ÷ dividend per share: how many times over this year's profit could pay this year's dividend.
WHERE YOU MEET IT
Div Cover in a holding's detail and in the Dividend Safety widget, worked out as 1 ÷ payout ratio.
WATCH OUT FOR
Below 1×, the dividend is bigger than the profit behind it.
FULL DEFINITION
Synonym for Dividend Coverage. It measures how many times a company's earnings can cover its dividend payments.
EXAMPLE
See Dividend Coverage for details.
HOW IT'S CALCULATED
Div Cover = 1 ÷ payout ratio, i.e. earnings per share ÷ dividends per share over the trailing twelve months, worked out by the app from the market data provider's payout ratio. N/A when there is no payout ratio or it is 0. See Dividend Coverage for the full method.
EXPLAINED IN
Educational content only. It is not personal financial advice.