uploads/2018/01/pizza.jpg

Understanding Pizza Companies’ Dividend Policies

By

Updated

Importance of dividends

Dividends help investors by smoothing out return volatility. Dividends are important for cyclical companies because they’re highly sensitive to the performance of the economy and other macroeconomic factors.

Article continues below advertisement

Domino’s Pizza

On November 10, 2017, Domino’s Pizza (DPZ) announced a dividend of $0.46 per share to be paid on December 29, 2017, to shareholders of record as of December 15, 2017. The company has paid dividends at a yield of 0.97% and a payout ratio of 31.8%.

Analysts expect Domino’s to pay a dividend of $0.46 in 4Q17 to take its total dividend for 2017 to $1.84, representing a rise of 21.1% over $1.52 in 2016.

Yum! Brands

On October 20, 2017, Yum! Brands (YUM) announced a dividend of $0.3 per share to be paid on December 8, 2017, to shareholders of record as of November 15, 2017. The company has paid dividends at a yield of 1.5% and a payout ratio of 42.7%.

Analysts expect Yum! Brands to pay a dividend of $0.35 in 4Q17 to take its total dividend for the year to $1.25, representing a fall of 27.7% from $1.73 in 2016.

Papa John’s

On October 27, 2017, Papa John’s (PZZA) announced a dividend of $0.23 per share to be paid on November 17, 2017, to shareholders of record as of November 7, 2017. The company has paid dividends at a yield of 1.6% and a payout ratio of 33.0%.

Analysts expect Papa John’s to pay a dividend of $0.23 in 4Q17 to take its total for the year to $0.85, representing a rise of 13.3% over $0.75 in 2016.

Next, we’ll look at the valuation multiples of these pizza companies.

Advertisement

More From Market Realist