Dividend Coverage: This Restaurateur has a Dividend Yield of 8.33%; Trades Ex-Dividend on June 15, 2017
LONDON, UK / ACCESSWIRE / June 14, 2017 / Pro-Trader Daily takes a closer look at DineEquity, Inc. (NYSE: DIN) as the Company's stock will begin trading ex-dividend on June 15, 2017. In order to capture the dividend payout, investors must purchase the stock one day before to the ex-dividend date; that is by latest June 14th, 2017. This would make the individual a shareholder on the respective Company's record, thereby entitling the investor to be paid a dividend on the payable date. Are you looking for research on dividend stocks, if so register with us now for your free membership at:
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Dividend Declared
On May 16, 2017, DineEquity, the parent Company of Applebee's Neighborhood Grill & Bar® and IHOP® restaurants, announced that its Board of Directors declared a cash dividend of $0.97 per share of common stock for Q2 2017. The dividend will be payable on July 07, 2017, to the Company's stockholders of record at the close of business on June 19, 2017.
DineEquity's indicated dividend represents a yield of 8.33%, substantially higher compared to the average dividend yield for the Services sector of 1.93%. The reason for the higher dividend is a contraction in the Company's stock price which has tumbled 45.71% of its market value in the past one year, thereby inflating the dividend yield. The Company has paid its dividend for three quarters in a row; increasing its dividend in November 2016, where DineEquity's Board of Directors approved a 5.4% hike, or $0.05 per outstanding share of common stock.
Dividend Insights
DineEquity has a dividend payout ratio of 79.7% meaning the Company distributes around $0.80 for every $1.00 earned, suggesting that the dividend is sufficiently covered by earnings currently. According to analysts' estimates, DineEquity is forecasted to report earnings of $5.40 per share in the coming year; therefore this should allow the Company to comfortably cover its annualized dividend of $3.88. Future payout ratio is expected to be at 72% of the projected earnings. As on March 31, 2017, DineEquity had cash and cash equivalents of approximately $129.25 million and current assets worth $299.02 million on its balance sheet. Having this liquidity cushion would allow the Company to absorb any fluctuations in earnings and pay its dividend without interruption.
About the Company
Based in Glendale, California, DineEquity, through its subsidiaries, franchises restaurants under the Applebee's Neighborhood Grill & Bar brand, franchises and operates restaurants under the International House of Pancakes (IHOP) brand. With more than 3,700 restaurants combined in 18 countries and 3 US territories and approximately 400 franchisees, DineEquity is one of the largest full-service restaurant companies in the world.
Recent Development for DineEquity
On May 02, 2017, DineEquity announced that revenue for Q1 2017 was $156.2 million, which was lower compared to revenue of $163.5 million in Q1 2016. The Company's same-restaurant sales fell 1.7% at IHOP and 7.9% at Applebee's.
For Q1 2017, DineEquity's GAAP net income available to common stockholders was $14.1 million, or $0.79 per diluted share, compared to net income available to common stockholders of $25.2 million, or earnings per diluted share of $1.37, for Q1 2016. The Company's adjusted net income available to common stockholders was $21.6 million, or $1.22 per diluted share for the reported quarter, compared to $29.1 million, or adjusted earnings per diluted share of $1.58, for the prior year's same quarter.
Stock Performance
On Tuesday, June 13, 2017, DineEquity's stock closed the trading session at $45.59, slipping 2.15% from its previous closing price of $46.59. A total volume of 372.84 thousand shares were exchanged during the session, which was above the 3-month average volume of 333.03 thousand shares. Shares of the Company have a PE ratio of 9.59 and have a dividend yield of 8.51%. The stock currently has a market cap of $825.63 million.
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