How it is worked out
Free cash flow divided by total regular dividends.
How to read it
- Below 1 means the dividend is paid with cash not earned this year (savings or borrowing).
Example
FCF $1bn, dividends $0.5bn: covered twice.
Dividend cover by free cash flow
Dividends and buybacks
How many times free cash flow covers what the company pays in dividends.
Related terms
Related pages
The other pages on US stocks, free to read. On the company pages, the last three fiscal years are open to everyone, five with a free account, and every year with Ploutos Investor.
US stocksThe market today, the sectors, the largest companies and the week's results.The market's sectorsThe 11 sectors side by side: returns, share of the market, median P/E and dividend.Compare stocksTwo companies side by side: price over up to ten years, with and without dividends, and every figure.US dividend stocksEach dividend's yield next to whether the company's cash covers it and whether it was ever cut.
Explanations of terms for learning, with examples from SEC filings.