Dividend Ratios (Formulas) | How to Calculate Dividend Coverage Ratio?
Dividend ratio measures the relative amount of profit that the company pays to its shareholders in a given period.
Dividend coverage ratio can be measured using the dividend payout ratio, plowback ratio or the retention ratio.
Dividends per share formula are used to find out the number of dividends that an investor might expect to receive if he/she were to buy a company's stock.
This dividend ratio formula measures the percentage of the dividend that the company pays (out of the income they make), it’s called “dividend payout ratio”.
This dividend coverage ratio is used to measure the amount of cash flow plowed back for every amount invested in the equity position.
This dividend coverage ratio helps an investor to figure out how much return she will get back.
Retention ratio formula indicates the percentage of a company’s earnings which is not paid out as dividends but credited back as retained earnings.
Plowback ratio is an indicator of the quantum of profit retained in a business instead of being paid out to the investors.
Dividend Payout Ratio is used to find out the percentage of dividend paid to the shareholders out of the net profit for the year.