Fintel reports that on September 20, 2023, TD Cowen reiterated coverage of Yum Brands (NYSE:YUM) with a Outperform recommendation.
Analyst Price Forecast Suggests 20.20% Upside
As of August 31, 2023, the average one-year price target for Yum Brands is 152.38. The forecasts range from a low of 133.32 to a high of $181.65. The average price target represents an increase of 20.20% from its latest reported closing price of 126.77.
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The projected annual revenue for Yum Brands is 7,179MM, an increase of 2.69%. The projected annual non-GAAP EPS is 5.16.
Yum Brands Declares $0.60 Dividend
On August 17, 2023 the company declared a regular quarterly dividend of $0.60 per share ($2.42 annualized). Shareholders of record as of August 29, 2023 received the payment on September 8, 2023. Previously, the company paid $0.60 per share.
At the current share price of $126.77 / share, the stock's dividend yield is 1.91%.
Looking back five years and taking a sample every week, the average dividend yield has been 1.79%, the lowest has been 1.43%, and the highest has been 3.33%. The standard deviation of yields is 0.24 (n=236).
The current dividend yield is 0.48 standard deviations above the historical average.
Additionally, the company's dividend payout ratio is 0.48. The payout ratio tells us how much of a company's income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company's income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend - not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest in those growth prospects, which translates to a payout ratio of zero to 0.5.
The company's 3-Year dividend growth rate is 0.29%, demonstrating that it has increased its dividend over time.
What is the Fund Sentiment?
There are 1975 funds or institutions reporting positions in Yum Brands. This is a decrease of 2 owner(s) or 0.10% in the last quarter. Average portfolio weight of all funds dedicated to YUM is 0.25%, an increase of 7.14%. Total shares owned by institutions decreased in the last three months by 10.16% to 268,574K shares. 
The put/call ratio of YUM is 0.74, indicating a bullish outlook.
What are Other Shareholders Doing?
T. Rowe Price Investment Management holds 13,637K shares representing 4.87% ownership of the company. In it's prior filing, the firm reported owning 11,772K shares, representing an increase of 13.67%. The firm increased its portfolio allocation in YUM by 15.45% over the last quarter.
Capital International Investors holds 13,170K shares representing 4.70% ownership of the company. In it's prior filing, the firm reported owning 10,962K shares, representing an increase of 16.76%. The firm increased its portfolio allocation in YUM by 18.24% over the last quarter.
Capital World Investors holds 13,112K shares representing 4.68% ownership of the company. In it's prior filing, the firm reported owning 12,644K shares, representing an increase of 3.57%. The firm increased its portfolio allocation in YUM by 1.23% over the last quarter.
AWSHX - WASHINGTON MUTUAL INVESTORS FUND holds 10,825K shares representing 3.86% ownership of the company. No change in the last quarter.
Jpmorgan Chase holds 10,050K shares representing 3.59% ownership of the company. In it's prior filing, the firm reported owning 8,962K shares, representing an increase of 10.83%. The firm increased its portfolio allocation in YUM by 735.71% over the last quarter.
Yum Brands Background Information
(This description is provided by the company.)
Yum! Brands, Inc., based in Louisville, Kentucky, has over 50,000 restaurants in more than 150 countries and territories primarily operating the Company's KFC, Pizza Hut, and Taco Bell brands - global leaders of the chicken, pizza, and Mexican-style food categories. The Company's family of brands also includes The Habit Burger Grill, a fast-casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches and more. In 2019, Yum! Brands was named to the Dow Jones Sustainability North America Index and in 2020, the company ranked among the top 100 Best Corporate Citizens by 3BL Media.
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