Coverage Shortfall

Coverage shortfall is the amount by which included dividends exceed the relevant earnings estimate for the same period and on the same per-share basis.

A simple example

If the matching four-quarter earnings estimate is $1.80 per share and annualized included dividends are $2.00, the shortfall is $0.20 per share. The figures must use the same earnings definition and period.

Why this matters to income investors

This term clarifies how dividend support is measured or interpreted.

How to use coverage shortfall in your research

Apply the definition consistently, use comparable figures, and identify the calculation and reporting period.

This material is general education and information, not individualized investment, tax, or legal advice.