Yum! Brands Inc. (NYSE: YUM) recently announced that its board of directors has approved a significant share repurchase plan for 2016. The board authorized a repurchase program up to $4.2 billion in additional shares of common stock, while also announcing a quarterly dividend of $0.46 per share.
The additional share repurchases are part of the company’s previously announced commitment to returning $6.2 billion of capital to shareholders prior to the planned separation of its China business, which is on track to be completed by the end of 2016. The capital will be returned in the form of share repurchases, a special dividend or a combination of the two.
From October 2015 through May 19, 2016, Yum repurchased 27.6 million shares of common stock totaling roughly $2 billion at an average price of $72 per share. The $4.2 billion in additional share repurchases of outstanding common stock is authorized through the end of 2016 and supersedes all previous unutilized authorizations. Repurchases of common stock may be made from time to time in the open market or through privately negotiated transactions and will be subject to market conditions and other factors.
The quarterly dividend is in addition to the targeted $6.2 billion in return of capital and will be distributed August 5, to shareholders of record at the close of business on July 15.
Greg Creed, CEO of Yum, commented:
Today’s announcement marks another step towards our goal of delivering meaningful cash returns and demonstrates the commitment of our Board and management team to creating shareholder value. Our capital return plans reflect our continued confidence in our long-term growth prospects as we move towards the separation of our China business, which will result in two distinct and attractive investment opportunities for all of our shareholders.
Shares of Yum were trading at $79.94 Monday morning, with a consensus analyst price target of $85.42 and a 52-week trading range of $64.58 to $93.33.
In 20 Years, I Haven’t Seen A Cash Back Card This Good
After two decades of reviewing financial products I haven’t seen anything like this. Credit card companies are at war, handing out free rewards and benefits to win the best customers.
A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges.
Our top pick today pays up to 5% cash back, a $200 bonus on top, and $0 annual fee. Click here to apply before they stop offering rewards this generous.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.