Why NYSE:YUM qualifies as a good dividend investing stock.

YUM! BRANDS INC (NYSE:YUM) was identified as a stock worth exploring by dividend investors by our stock screener. NYSE:YUM scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

Understanding NYSE:YUM's Dividend

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:YUM earns a 7 out of 10:

• YUM's Dividend Yield is rather good when compared to the industry average which is at 3.21. YUM pays more dividend than 80.45% of the companies 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.
• The dividend of YUM is growing, but earnings are growing more, so the dividend growth is sustainable.

A Closer Look at Health for NYSE:YUM

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:YUM scores a 5 out of 10:

• Looking at the Altman-Z score, with a value of 2.32, YUM is in the better half of the industry, outperforming 67.67% of the companies in the same industry.
• YUM has a better Debt to FCF ratio (8.32) than 65.41% of its industry peers.
• YUM has a better Current ratio (1.49) than 69.92% of its industry peers.
• YUM has a Quick ratio of 1.49. This is in the better half of the industry: YUM outperforms 74.44% of its industry peers.

Looking at the Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NYSE:YUM has earned a 7 out of 10:

• The Return On Assets of YUM (25.88%) is better than 98.50% of its industry peers.
• With an excellent Return On Invested Capital value of 38.31%, YUM belongs to the best of the industry, outperforming 97.74% 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 10.08%.
• YUM has a Profit Margin of 22.92%. This is amongst the best in the industry. YUM outperforms 95.49% of its industry peers.
• With an excellent Operating Margin value of 32.76%, YUM belongs to the best of the industry, outperforming 96.24% of the companies in the same industry.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of YUM contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.