A company's dividend cover has fallen from 4.0 to 1.5 over two years. Which of the following best describes this trend?

Question

A company's  dividend cover  has fallen from 4.0 to 1.5 over two years. Which of the following best describes this trend?

Answer

The company is retaining more profit for reinvestment

Answer

The company's dividend is becoming less sustainable

Answer

Dividend payments have decreased significantly

Answer

Shareholder returns are being diluted

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