What ratio is earnings per share divided by dividend per share?

The ratio of earnings per share divided by dividend per share is dividend cover.

Dividend cover shows how many times a company’s earnings could theoretically pay its dividend. For example, EPS of $2 and a dividend of $0.50 produce dividend cover of 4.0, meaning earnings are four times the distribution. A higher figure often suggests a larger earnings cushion, while a lower figure can indicate greater pressure on the dividend.

The measure is particularly common in equity-income analysis and is closely related to the payout ratio. Dividend cover is the reciprocal of payout ratio when both use consistent earnings and dividend definitions: cover of 4 corresponds to a 25% payout ratio.

It is not dividend yield, which compares dividends with the share price. Nor is it simply another name for every form of payout ratio, although terminology varies across markets. Analysts must also consider exceptional earnings, debt, cash flow, and whether the dividend is sustainable rather than relying on one year’s cover alone.