Dividend cover

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Dividend cover is the ratio of company's earnings (net income) over the dividend paid to shareholders, calculated as earnings per share divided by the dividend per share.[1] So, if a company has earnings per share of $10.00 and it pays out a dividend of $2.00, the dividend cover is 5.0x.

Basic formula[edit]

DC = EPS/DPS

See also[edit]

References[edit]