You can count on Taco Bell for many things: cheap eats, sudden indigestion and a fire sauce that’s anything but fiery.
But a solid dividend? Yes, as it turns out. Taco Bell’s parent company, Yum Brands (YUM), has authorized a 14% increase in its quarterly dividend. It will be the seventh consecutive double-digit increase for shareholders.
The new dividend is 28.5 cents a share. At Wednesday’s closing price of $53.30, the dividend yield would be 2.14%. That’s about in line with the 2.11% average dividend yield of all stocks in the S&P 500 index ($INX), Seeking Alpha notes. It’s also higher than the 10-year Treasury.
Yum said it tries to target a payout ratio of 35% to 40% of annual net income for its dividends.