We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Yum! Brands (YUM) Rewards Investors With 12% Dividend Hike
Read MoreHide Full Article
Yum! Brands Inc. (YUM - Free Report) announced a 12% increase in its quarterly dividend to 47 cents per share. The raised dividend will be paid out on Mar 6, 2020 to its shareholders of record as of Feb 14. Notably, the dividend yield, based on the new payout and the last closing price, is approximately 1.8%.
On Feb 13, 2019, Yum Brands increased its dividend by 17% from 36 cents to 42 cents. The company’s steady dividend payout history is likely to make it an attractive investment choice for value investors or those seeking a stable stream of investment income.
Consistent dividend hikes highlight the company's financial stability and ability to sustain profits. Its attempt to enhance long-term shareholders' value, even in a volatile economic environment, is appreciable.
Rationale Behind the Dividend Hike
Yum! Brands’ strategic transformation plan to drive growth, efforts to boost the domestic business through various digital initiatives and refranchising efforts bode well.
The company aims to revamp its financial profile, and thereby improve the efficiency of its organization and cost structure globally. It believes that a “slimmer Yum Brands” would lead to efficiency gains.
In addition, the company aims to maintain an optimized capital structure, with the leverage of five times EBITDA. Over the next three years, it is committed to returning additional $6.5-$7 billion to shareholders through share repurchases and dividend payouts. Resultantly, it expects EPS to be at least $3.75 in the fourth quarter of 2019.
Furthermore, Yum! Brands’ efforts to boost its three iconic global brands and create more efficient cost structure are quite encouraging. Shares of the company have gained 13.4% in the past year compared with the industry’s 18.9% growth.
Chuy’s, Denny’s and Chipotle have impressive long-term earnings growth rate of 17.5%, 9% and 19.7%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained an impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
Yum! Brands (YUM) Rewards Investors With 12% Dividend Hike
Yum! Brands Inc. (YUM - Free Report) announced a 12% increase in its quarterly dividend to 47 cents per share. The raised dividend will be paid out on Mar 6, 2020 to its shareholders of record as of Feb 14. Notably, the dividend yield, based on the new payout and the last closing price, is approximately 1.8%.
On Feb 13, 2019, Yum Brands increased its dividend by 17% from 36 cents to 42 cents. The company’s steady dividend payout history is likely to make it an attractive investment choice for value investors or those seeking a stable stream of investment income.
Consistent dividend hikes highlight the company's financial stability and ability to sustain profits. Its attempt to enhance long-term shareholders' value, even in a volatile economic environment, is appreciable.
Rationale Behind the Dividend Hike
Yum! Brands’ strategic transformation plan to drive growth, efforts to boost the domestic business through various digital initiatives and refranchising efforts bode well.
The company aims to revamp its financial profile, and thereby improve the efficiency of its organization and cost structure globally. It believes that a “slimmer Yum Brands” would lead to efficiency gains.
In addition, the company aims to maintain an optimized capital structure, with the leverage of five times EBITDA. Over the next three years, it is committed to returning additional $6.5-$7 billion to shareholders through share repurchases and dividend payouts. Resultantly, it expects EPS to be at least $3.75 in the fourth quarter of 2019.
Furthermore, Yum! Brands’ efforts to boost its three iconic global brands and create more efficient cost structure are quite encouraging. Shares of the company have gained 13.4% in the past year compared with the industry’s 18.9% growth.
Zacks Rank & Key Picks
Yum! Brands currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the same space include Chuy's Holdings, Inc. (CHUY - Free Report) , Denny's Corporation (DENN - Free Report) and Chipotle Mexican Grill, Inc. (CMG - Free Report) . While Chuy’s and Denny’s sport a Zacks Rank #1 (Strong Buy), Chipotle carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Chuy’s, Denny’s and Chipotle have impressive long-term earnings growth rate of 17.5%, 9% and 19.7%, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained an impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>