Yum! Brands has only paid a dividend since 2004, but it's increased its payout each year -- and at a very high rate, to boot. It's a very encouraging, albeit brief, track record.Nevertheless, past returns don't guarantee future results, so dividend history is only 10% of the final grade. Yum! does, however, score a 5 of 5 in this category. Even though Yum! has increased its dividend quickly, it has wisely not paid out more than it could afford.
At first glance, the company appears to have a strong balance sheet, but its credit ratings --- i.e., BBB+ at Morningstar, BBB- at Standard & Poor's -- while undeniably investment-grade aren't immaculate, either. Morningstar, for example, said that the company's off-balance sheet operating leases (a common thing for retailers and restaurants) added to the company's overall obligations and reduced the operating profit coverage of those obligations. Even if we downgraded Yum! Brands' balance sheet score to a "3" to account for operating leases, it would still score an "A-." Bottom line: the dividend looks quite healthy.
Source: Motley Fool
Related Articles:
Dividend Check-Up: Yum! Brands
Posted by D4L | Wednesday, February 16, 2011 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
Dividends and diversification -- those two things can help you achieve a comfortable retirement when combined with the income you will recei...
-
The best dividend stocks have one thing in common: resiliency. They can continue increasing their dividends even in the harshest economic en...
-
A good dividend stock has more than a high yield. Dividends need to be supported by cash flow, and cash flow depends on the long-term streng...
-
Investors wanting to enjoy steady and consistent income should consider dividend aristocrats. In fact, even in these chaotic times, dividend...
-
When looking for dividend stocks to invest in, it is advisable to choose companies that have strong dividend histories and stable balance sh...
-
It's hard to beat a sustainable, high-yield dividend paired with a beaten-down valuation. The best dividend stocks offer high yields and...
-
Higher dividend yields often imply that the underlying company paying the dividend has a higher risk profile. However, that's not always...
-
When hunting for discounted investments, one excellent starting point is to look for businesses with dividend yields trading above their fiv...
-
Strange but true: seniors fear death less than running out of money in retirement. And unfortunately, even retirees who have built a nest eg...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.