Yum! Brands' board of directors has announced the authorization of $300 million in share repurchases over the next 12 months in addition to the $300 million authorized in September of 2009.
Between 2004 and 2009, Yum!, parent company of KFC, Taco Bell and Pizza Hut, repurchased $5.6 billion of stock at an average price of $28.23, resulting in a 21 percent reduction in shares outstanding. This year, Yum! has utilized approximately $130 million of the $300 million share repurchase authorization from September 2009.
The board also announced a dividend of $0.21 per share of common stock. The quarterly dividend will be distributed May 7, 2010, to shareholders of record at the close of business on April 16, 2010, according to a release. Yum! initiated its dividend program in 2004 and has raised the quarterly dividend each subsequent year.
The quarterly dividend has more than quadrupled since inception after the most recent increase of 11 percent in September of 2009. Over time, Yum! targets a payout ratio of 35 percent to 40 percent of annual net income.
