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3 Long Term Payers Announce Dividends

GuruFocus.com
·5 min read

Yum Brands Inc (NYSE:YUM), Martin Marietta Materials Inc (NYSE:MLM) and Medical Properties Trust Inc (NYSE:MPW) announced quarterly dividends on Thursday, Aug. 13.

These large cap stocks draw the attention of dividend investors because they are long term dividend distributors.

Yum Brands Inc

The Louisville, Kentucky-based worldwide restaurants operator and franchisor announced that on Sept. 11, it will pay a quarterly cash dividend of 47 cents per common share to its shareholders of record as of Aug. 26.


The ex-dividend date is scheduled for Aug. 25. The payment will be on par with the prior payment.

Based on Thursday's closing price of $92.77 per share, the quarterly dividend produces a forward dividend yield of 2.02%.

Yum Brands Inc has been distributing dividends for more than 15 years and increasing them by a compound annual growth rate of 11.6% over the last 10 years.

The company finances the payment of the quarterly dividend with $1.44 billion in cash on hand and funds from the operating cash flow. The prior 12 months of operating activities through the most recent quarter generated $1.22 billion.

GuruFocus has assigned a low score of 3 out of 10 to the financial strength of the company and a high score of 8 out of 10 to its profitability.

The share price has fallen by 20.3% over the past year for a 52-week range of $54.95 to $119.59.

The market capitalization is $27.96 billion and the price-sales ratio yields 5.22 compared to the industry median of 0.7.

Wall Street sell-side analysts recommend a hold rating for the stock and have established an average target price of $98.95 per share.

Martin Marietta Materials Inc

The Raleigh, North Carolina-based building materials supplier to U.S. and international construction companies announced that on Sept. 30, it will proceed with the payment of a quarterly cash dividend of 57 cents per common share to the shareholders of record as of Sept. 1.

The payment represents a 3.64% hike from the previous one. The ex-dividend date is scheduled for Aug. 31.

Based on Thursday's closing price of $219.63 per share, the quarterly cash dividend generates a forward dividend yield of 1%.

Martin Marietta Materials Inc has distributed dividends for more than 25 years and increased them by a CAGR of 2.56% over the past ten years.

The company sustains the payment with cash on hand of $70 million and trailing 12-month operating cash flow of approximately $1 billion as of the most recent quarter.

GuruFocus has assigned a positive score of 5 out of 10 to the company's financial strength and a high score of 8 out of 10 to its profitability.

The share price has declined by 12.2% over the past year, determining a 52-week range of $135.08 to $281.82.

The stock has a market capitalization of $13.68 billion, a price-book ratio of 2.52 versus the industry median of 1.09 and a price-sales ratio of 2.9 versus the industry median of 0.91.

Wall Street sell-side analysts recommend an overweight rating for this stock and have set an average target price of $244.84 per share.

Medical Properties Trust Inc

The Birmingham, Alabama-based real estate investment trust company focusing on healthcare facilities announced that on Oct. 8, it will distribute a 27 cents per common share quarterly cash dividend to shareholders of record as of Sept 10.

The distribution will be in line with the previous one. The ex-dividend date is scheduled for Sept. 9.

Based on Thursday's closing price of $19.07 per share, the quarterly dividend generates a forward yield of 5.68%.

Medical Properties Trust Inc. has paid dividends for nearly 15 years and increased them by a CAGR of 2.46% over the last 10 years.

The company sustains the quarterly dividend with $375 million available in cash on hand and equivalents and funds from the operating cash flow. The company generated cash flows of approximately $585 million over the last 12 months of operating activities through the most recent quarter.

GuruFocus has assigned a moderate score of 4 out of 10 to the company's financial strength and a very good score of 7 out of 10 to its profitability.

The share price has risen 7% over the past year, determining a 52-week range of $12.35 to $24.29.

The stock has a market capitalization of $10.08 billion, a price-book ratio of 1.43 versus the industry median of 0.91 and a price-sales ratio of 8.89 versus the industry median of 6.76.

Wall Street sell-side analysts issued an overweight recommendation rating for the stock and have determined an average target price of $20.73 per share.

Disclosure: I have no positions in any securities mentioned.

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This article first appeared on GuruFocus.