Dividend cover is a rough indication of how likely it is that a company can continue to pay dividends at the current rate. It is calculated by dividing the total earnings of the company by the total ordinary dividend payout.

For example, suppose that company XYZ has total earnings of $150000000 for the year, and paid out $20000000 in dividends:

	DC = TE / DIV PAYOUT
	   = $150000000 / $20000000
	   = 7.5

A higher dividend cover is better, ceteris paribus.