David, can you help a novice with some of these terms?
You said in an earlier comment in this thread that "Coverage" was essentially "Payout Ratio". I understand payout ratio as Dividends / Earnings.
You just said Coverage and ROE are both good to use because one uses cash and the other a GAAP look. Fair enough.
But, if it's important to have a cash and GAAP view, then how can Coverage be essentially the same as Payout Ratio? Isn't one GAAP oriented while the other cash?
81 Dividend Growers to Consider [View article]
You said in an earlier comment in this thread that "Coverage" was essentially "Payout Ratio". I understand payout ratio as Dividends / Earnings.
You just said Coverage and ROE are both good to use because one uses cash and the other a GAAP look. Fair enough.
But, if it's important to have a cash and GAAP view, then how can Coverage be essentially the same as Payout Ratio? Isn't one GAAP oriented while the other cash?