Dividend cover ratio
Description
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. Ratio of 2 or higher is considered safe,anything below 1.5 is risky. (Dividend cover is the reciprocal of dividend payout ratio)
Related formulasVariables
| DCR | Dividend cover ratio (ratio of 2 or higher is considered safe,anything below 1.5 is risky.) (dimensionless) |
| EPS | Earning per share (dimensionless) |
| DPS | Dividends per share (dimensionless) |