10 Things Every Dividend Investor Should Know

1. Dividend Coverage:

Dividend coverage is a measure of a company’s ability to pay its dividends from its earnings or cash flow. It is calculated by dividing the company’s earnings or cash flow by the amount of dividends it pays.

If a company has high dividend coverage, it means that it is generating enough earnings or cash flow to comfortably pay its dividends. On the other hand, if a company has low dividend coverage, it may be at risk of cutting its dividend if its earnings or cash flow declines.

Dividend coverage is an important metric for dividend investors, as it can help them assess the sustainability of a company’s dividend payments.

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