Yum! Brands Incorporated announced a regular quarterly dividend of $0.51, an 11 percent increase from the prior rate of $0.46 per share. The dividend will be paid at the new higher rate on November 4, 2016, to shareholders of record at close of business on October 19, 2016.
Listed in the table below are the quarterly dividend payments since 2010. Our analysis of Yum as a Top 100 Dividend Stock candidate is listed below;
Analysis of YUM! Brands is based upon our five key criteria for the Top 100 list, which include;
|Dividend Growth (5 year VL)||14%||74|
|S&P Financial Rating||B++||160|
|Price 9/27/16||% Yield||5 Year Div. Growth Rate||SPS 2016||P/S Ratio||10 yr P/S Low||10 yr P/S High||5 yr max Yield %||5 yr lowest Yield %|
- Yum!’s dividend yield is higher than that of the S&P 500 Index and is also trading towards the higher end of its average historical dividend yield.
- Yum! maintains a 5 year dividend growth rate of 14% This is lower than 22 other companies in the sector and ranks 74 among all companies.
- Yum! has paid out a dividend consecutively for the past 13 years.
- Yum! is trading at the top of its average price/sales (P/S) range at 2.33. From a relative valuation perspective, Yum is overvalued based upon its historical trading history.
- Yum! maintains a credit rating of B++. This is below investment grade, a negative. It was downgraded by S&P last December.
- Yum! maintains a beta of 0.91, lower than the average company.
- Yum!’s total ranking is 170.
Based upon its high P/S ratio and poor credit rating, Yum! does not qualify as one of our Top 100 Dividend Stocks.
Yum! Brands Inc. Dividend Yield Chart (Click to enlarge)
Chart Explanation: Dividend growth stocks may be viewed favorably when the current yield is above historical readings for the past 5 years.
Further information on dividend investing and evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles