Investors eyeing Yum! Brands (NYSE:YUM)' upcoming dividends should mark their calendars as the ex-dividend date approaches. The company has announced that transactions from Monday will not qualify for the December 8th dividend, which is set at $0.60 per share. With a stock price of $128.24, Yum! Brands boasts a trailing yield of about 1.9%.
The operator of well-known fast-food franchises has demonstrated financial resilience, with a low payout ratio and strong free cash flow figures that support the continuation of its earnings distribution to shareholders. This financial stability is further underscored by a consistent earnings growth trajectory, averaging nearly 6.8% annually.
Yum! Brands has a history of rewarding investors with progressive dividends, recording an average annual increase of approximately 6.1% over the past decade. This pattern of incrementing dividends reflects the company's commitment to providing an enduring and reliable income stream to its shareholders.
InvestingPro Insights
As investors look towards Yum! Brands' dividend prospects, real-time data from InvestingPro provides a deeper dive into the company's financial health. The company's market capitalization stands at a robust $35.95 billion, reflecting a significant presence in the market. With a price-to-earnings (P/E) ratio of 23.91, Yum! Brands trades at a premium, which is further evidenced by an adjusted P/E ratio over the last twelve months as of Q3 2023 at 22.82.
InvestingPro Tips highlight that Yum! Brands' revenue growth has been accelerating, with a 5.15% increase over the last twelve months as of Q3 2023. This aligns with the company's history of consistent earnings growth. Moreover, the company has raised its dividend for six consecutive years, showcasing a commitment to returning value to shareholders—a fact that resonates with the company's recent dividend announcement.
For investors seeking more in-depth analysis, InvestingPro offers an array of additional tips—20 analysts have revised their earnings downwards for the upcoming period, which could be a vital consideration for future expectations. It's also noted that Yum! Brands operates with a high return on assets, indicating efficient use of its asset base to generate profits.
To gain access to more InvestingPro Tips, which include insights on the company's trading patterns, dividend sustainability, and profitability forecasts, investors can take advantage of the special Black Friday sale offering up to 55% off on a subscription. Currently, there are 9 additional tips available on InvestingPro that could further inform investment decisions in Yum! Brands.
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