单词 | dividend cover |
释义 | dividend cover The number of times a company's dividends to ordinary shareholders could be paid out of its net profits after tax in the same period. For example, a net dividend of £400,000 paid by a company showing a net profit of £1M is said to be covered 21/2 times. Dividend cover is a measure of the probability that dividend payments will be sustained (low cover might make it difficult to pay the same level of dividends in a bad year's trading) and of a company's commitment to investment and growth (high cover implies that the company retains its earnings for investment in the business). Negative dividend cover is unusual, and may be a sign that a company is in difficulties although a company may maintain its dividend in spite of temporary problems. In the USA, the dividend cover is expressed as the pay-out ratio, the total dividends paid as a percentage of the net profit. See also: |
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