|
PARTNER NEWS:
Wed, Apr 24, 8:15 AM, Zacks
Thu, Feb 22, 11:00 AM, Zacks
Featured MNV Articles:
| YUM Crosses Above 2% Yield TerritoryBy Dividend Channel Staff, Tuesday, February 20, 3:08 PM ET
In trading on Tuesday, shares of Yum! Brands Inc (NYSE:YUM) were yielding above the 2% mark based on its quarterly dividend (annualized to $2.68), with the stock changing hands as low as $133.09 on the day. Dividends are particularly important for investors to consider, because historically speaking dividends have provided a considerable share of the stock market's total return. To illustrate, suppose for example you purchased shares of the S&P 500 ETF (SPY) back on 12/31/1999 — you would have paid $146.88 per share. Fast forward to 12/31/2012 and each share was worth $142.41 on that date, a decrease of $4.67/share over all those years. But now consider that you collected a whopping $25.98 per share in dividends over the same period, for a positive total return of 23.36%. Even with dividends reinvested, that only amounts to an average annual total return of about 1.6%; so by comparison collecting a yield above 2% would appear considerably attractive if that yield is sustainable. Yum! Brands Inc (NYSE:YUM) is an S&P 500 company, giving it special status as one of the large-cap companies making up the S&P 500 Index.
In general, dividend amounts are not always predictable and tend to follow the ups and downs of profitability at each company. In the case of Yum! Brands Inc, looking at the history chart for YUM below can help in judging whether the most recent dividend is likely to continue, and in turn whether it is a reasonable expectation to expect a 2% annual yield.
Special Offer: Join the income investing conversation on ValueForum.com with a special Seven Days for Seven Dollars invitation.
This Article's Word Cloud:
Arial
Brands
Days
Dividends
Dollars
Even
Fast
Index
Join
Juicy
More
NYSE
Offer
Seven
Special
Start
Stocks
Tuesday
ValueForum
Where
Yields
about
above
afterLeftLabels
always
amounts
annual
annualized
appear
company
consider
dividend
dividends
each
escape
fillColor
have
over
period
return
share
shares
special
stock
that
total
whether
with
would
yield
|