Yummy Dividend Hike (YUM, MCD, SBUX, CMG)

Yum! Brands Inc. (NYSE: YUM), which owns KFC, Pizza Hut, and Taco Bell stores, today raised its quarterly dividend from $0.285 to $0.335, an annual hike of about 18%. The annual dividend rate rises from $1.14 to $1.34, for a dividend yield at today's opening price of $67.81 of 1.7%.

Yum Brands still trails McDonald's Corp. (NYSE: MCD), which pays an annual dividend of $2.80 for a yield of 3%. Starbucks Corp. (NASDAQ: SBUX) pays an annual dividend of $0.68, for a yield of 1.4% and Chipotle Mexican Grill Inc. (NYSE: CMG) pays no dividend at all.

Yum's CEO noted that this is the eighth consecutive year that the company has raised its dividend by a double-digit amount and that the dividend had more than doubled in the past five years. He also noted:

Our first priority with the operating cash we generate is to invest in high-return global growth opportunities. In addition to investing in future growth, Yum!'s consistent performance and substantial free cash flow generation allows us to return significant cash to our shareholders through a meaningful quarterly dividend and share buybacks.

The company's shares are up about 0.1% at $67.90 in the late afternoon in a 52-week range of $47.15 to $74.44.

Paul Ausick

Filed under: 24/7 Wall St. Wire, Dividend, Food, Shareholder Issues Tagged: CMG, MCD, SBUX, YUM
Read Full Story

Can't get enough business news?

Sign up for Finance Report by AOL and get everything from retailer news to the latest IPOs delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.