Analysts are expecting Wendy’s (WEN) to pay dividends of $0.06 in 2Q16 and 3Q16, the same as in 1Q16. However, in 4Q16, analysts expect the company to increase dividends to $0.07. Overall for fiscal 2016, dividends are expected to total $0.25, a rise of 10.7% from $0.23 in 2015. In 1Q17, analysts are expecting Wendy’s to pay dividends of $0.07 to its shareholders.
The dividend yield for 2Q16 is expected to be 2.5%. For the next 12 months, it’s expected to be 2.8%. Wendy’s peers Jack in the Box (JACK) and Restaurant Brands International (QSR) are expected to have dividend yields of 1.4% and 1.6%, respectively, for the next 12 months. A company’s dividend yield indicates how much the company pays out in dividends each year relative to its share price.
Apart from paying dividends, Wendy’s also rewards its shareholders with share repurchases or buybacks. The board of directors approved the repurchase of shares worth $1.6 billion since 2012. The company repurchased $100 million in November 2012, $100 million in August 2014, and $1.4 billion in June 2015.
Since the beginning of 3Q16 until the end of 1Q16, the company had repurchased shares worth $1 billion. As of April 3, 2016, the company had purchased $330 million worth of shares under its repurchase program. From April 3 through May 5, the company had purchased shares worth $21.9 million. Share repurchases decrease shares outstanding, which boosts earnings per share.
In the next part of this series, we’ll look at Wendy’s price-to-earnings ratio.