Yum! Brands said on February 8, 2023 that its board of directors declared a regular quarterly dividend of $0.60 per share ($2.42 annualized). Shareholders of record as of February 21, 2023 will receive the payment on March 10, 2023. Previously, the company paid $0.57 per share.
At the current share price of $131.42 / share, the stock’s dividend yield is 1.84%. Looking back five years and taking a sample every week, the average dividend yield has been 1.79%, the lowest has been 1.43%, and the highest has been 3.33%. The standard deviation of yields is 0.24 (n=237).
The current dividend yield is 0.23 standard deviations above the historical average.
Additionally, the company’s dividend payout ratio is 0.51. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company’s 3-Year dividend growth rate is 0.29%, demonstrating that it has increased its dividend over time.
Analyst Price Forecast Suggests 9.71% Upside
As of February 9, 2023, the average one-year price target for Yum! Brands is $144.17. The forecasts range from a low of $121.20 to a high of $176.40. The average price target represents an increase of 9.71% from its latest reported closing price of $131.42.
The projected annual revenue for Yum! Brands is $7,179MM, an increase of 4.93%. The projected annual EPS is $5.16, an increase of 11.29%.
What is the Fund Sentiment?
There are 1878 funds or institutions reporting positions in Yum! Brands. This is an increase of 4 owner(s) or 0.21% in the last quarter. Average portfolio weight of all funds dedicated to YUM is 0.22%, an increase of 0.02%. Total shares owned by institutions increased in the last three months by 0.40% to 265,186K shares. The put/call ratio of YUM is 0.53, indicating a bullish outlook.
What are large shareholders doing?
T. Rowe Price Investment Management holds 18,127K shares representing 6.44% ownership of the company.
Capital World Investors holds 12,183K shares representing 4.33% ownership of the company. In it’s prior filing, the firm reported owning 10,960K shares, representing an increase of 10.04%. The firm increased its portfolio allocation in YUM by 10.06% over the last quarter.
PRWCX – T. Rowe Price Capital Appreciation Fund holds 11,442K shares representing 4.06% ownership of the company. In it’s prior filing, the firm reported owning 12,951K shares, representing a decrease of 13.19%. The firm decreased its portfolio allocation in YUM by 15.00% over the last quarter.
AWSHX – WASHINGTON MUTUAL INVESTORS FUND holds 10,809K shares representing 3.84% ownership of the company. In it’s prior filing, the firm reported owning 9,314K shares, representing an increase of 13.83%. The firm increased its portfolio allocation in YUM by 15.20% over the last quarter.
Capital International Investors holds 10,041K shares representing 3.56% ownership of the company. In it’s prior filing, the firm reported owning 8,666K shares, representing an increase of 13.69%. The firm increased its portfolio allocation in YUM by 16.41% over the last quarter.
Yum Brands Background Information
(This description is provided by the company.)
Yum! Brands, Inc., based in Louisville, Kentucky, has over 50,000 restaurants in more than 150 countries and territories primarily operating the Company’s KFC, Pizza Hut, and Taco Bell brands – global leaders of the chicken, pizza, and Mexican-style food categories. The Company’s family of brands also includes The Habit Burger Grill, a fast-casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches and more. In 2019, Yum! Brands was named to the Dow Jones Sustainability North America Index and in 2020, the company ranked among the top 100 Best Corporate Citizens by 3BL Media.
This article originally appeared on Fintel
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