Analysis – Yum! Brands Inc. Increases Dividend by 11%

YUM

Yum! Brands Incoporated announced a regular quarterly dividend of $0.41, an 11 percent increase from the prior rate of $0.37 per share. The dividend will be paid at the new higher rate on November 7, 2014, to shareholders of record at close of business on October 17, 2014.

Date Quarterly Dividend
10/17/2014 0.41
7/9/2014 0.37
4/9/2014 0.37
1/15/2014 0.37
10/9/2013 0.37
7/10/2013 0.335
4/10/2013 0.335
1/9/2013 0.335
10/10/2012 0.335
7/11/2012 0.285
4/11/2012 0.285
1/11/2012 0.285
10/12/2011 0.285
7/13/2011 0.25
4/13/2011 0.25
1/12/2011 0.25
10/13/2010 0.25
7/14/2010 0.21
4/14/2010 0.21
1/13/2010 0.21

Analysis of Valuation of Yum! Brands Inc. (Symbol YUM).

Yum! Brands is trading above its average price/sale (P/S) range.  Yum! Brands is trading toward the top of its average historical dividend yield. 

Price 09/10/14 % Yield 5 Year Div. Growth Rate  SPS    2014 P/S Ratio 10 yr P/S  Low 10 yr P/S  High 5 yr max Yield % 5 yr lowest Yield %
$72.59 2.10% 9% 32.55 2.14 0.87 2.22 2.20% 1.80%

Yum! Brands Dividend Yield Chart (Click to enlarge)

YUM

Explanation:  Dividend growth stocks may be valued upon historical relative price/sales and current yield analysis. Dividend stocks trading at a low historical price/sales (P/S) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/S ratio stocks.  Max P/S price target is based upon company reaching its highest historical P/S ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years.  Further information on evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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