{"slug":"dividend-safety-and-cash-flow-coverage","qid":"illustrative_coverage_two_ways","label":"Same year, two payout ratios: earnings basis against cash basis (illustrative, percent)","post_title":"Is a Dividend Safe? Free Cash Flow Test","post_url":"/blog/dividend-safety-and-cash-flow-coverage#q-illustrative_coverage_two_ways","columns":["ratio_basis","payout_pct"],"rows":[{"ratio_basis":"Dividends over net income","payout_pct":80},{"ratio_basis":"Dividends over free cash flow","payout_pct":213}],"shape":"ranking","sql":"SELECT\n    ratio_basis,\n    ROUND(100.0 * dividends_usd_mm / denominator_usd_mm) AS payout_pct\nFROM\n(\n    SELECT 'Dividends over net income' AS ratio_basis, 320 AS dividends_usd_mm, 400 AS denominator_usd_mm, 1 AS ratio_order\n    UNION ALL\n    SELECT 'Dividends over free cash flow', 320, 600 - 450, 2\n)\nORDER BY ratio_order","computed_at":"2026-08-07T14:33:01.350196+00:00","elapsed":0.001554742}