Is NYSE:YUM a Good Fit for Dividend Investing?

Last update: Jun 24, 2024

Take a closer look at YUM! BRANDS INC (NYSE:YUM), a stock of interest to dividend investors uncovered by our stock screener. NYSE:YUM excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Dividend Assessment of NYSE:YUM

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:YUM was assigned a score of 7 for dividend:

Compared to an average industry Dividend Yield of 2.96, YUM pays a better dividend. On top of this YUM pays more dividend than 80.60% of the companies listed in the same industry.
The dividend of YUM is nicely growing with an annual growth rate of 10.79%!
YUM has paid a dividend for at least 10 years, which is a reliable track record.
As YUM did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
YUM's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Health Assessment of NYSE:YUM

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:YUM has earned a 5 out of 10:

YUM has a Altman-Z score of 2.40. This is in the better half of the industry: YUM outperforms 69.40% of its industry peers.
The Debt to FCF ratio of YUM (8.32) is better than 65.67% of its industry peers.
The Current ratio of YUM (1.49) is better than 70.15% of its industry peers.
YUM has a Quick ratio of 1.49. This is in the better half of the industry: YUM outperforms 74.63% of its industry peers.

A Closer Look at Profitability for NYSE:YUM

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NYSE:YUM, the assigned 7 is noteworthy for profitability:

The Return On Assets of YUM (25.88%) is better than 98.51% of its industry peers.
With an excellent Return On Invested Capital value of 38.31%, YUM belongs to the best of the industry, outperforming 97.76% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for YUM is significantly above the industry average of 10.07%.
Looking at the Profit Margin, with a value of 22.92%, YUM belongs to the top of the industry, outperforming 95.52% of the companies in the same industry.
YUM has a better Operating Margin (32.76%) than 96.27% of its industry peers.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Check the latest full fundamental report of YUM for a complete fundamental analysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.