Quick service restaurant chain Yum! Brands Inc.(NYSE:YUM) has maintained its quarterly dividend of $0.285 a share. The company has been paying a dividend since 2004.
The dividend will be payable on May 4 to those shareholders, whose name appear on the record date April 13. The stock will go ex-dividend on April 11.
DRI has hiked its dividend for the seventh straight year. The current dividend pay out ratio is 25 percent and the average pay out ratio for the 5-year period is 36 percent. The Yum! dividend policy continues to expect a payout ratio of 35% to 40% of annual net income.
The latest dividend yield works out to 1.50 percent, and the average yield for the 5-year period is 1.90 percent. The five-year U.S. Treasuries bond yield works out to 1.07 percent, average triple A municipal bonds yield 1.09 percent, and double A rated Municipal bonds 1.32 percent.
The five-year triple A rated corporate bonds yield represents 2.21 percent, while the yield for double A rated corporate bonds is lower at 1.73 percent.
Considering the yield aspect, Yum! Brands dividend yield is much better than U.S. Treasuries and municipal bonds but lower than corporate bonds.
The return on the stock investment is also healthier. The one year return is 40.92 percent, the three-year return on investments is significantly higher at 157.83 percent, and the five year return on DRI is healthier at 151.93 percent.