The phrase "to cover the dividend" means to have enough money or earnings to pay out the expected or promised dividends to shareholders. Full definition
Are they adequately and consistently covering their dividend payments with true free cash flow generated from operations? (dividendmonk.com)
The company is comfortably covering its dividend via free cash flow. (dailytradealert.com)
Earlier I decided to start concentrating on companies that don't carry debt on their balance sheet because I am terrified of companies covering dividends with debt. (besmartrich.com)