Those of you that know me are aware of my love of Taco Bell. My greatest loss in a zombie apocalypse would be no more Doritos Cheesy Gordita Crunches. So it should be no surprise that I took advantage of YUM Brands’ recent price dip and made myself an owner of my favorite chain. YUM Brands also owns Pizza Hut and KFC, a couple other college favorites.
I bought 13 shares of YUM at $75.95 per share.
At the time I made this purchase, their PE Ratio was about 26. Which is a little high by my standards, but relatively low for YUM. YUM has a 10 year average dividend growth rate of 25.99% and dividend increase of 12.20% just last year. This is pretty nice considering the entry yield is over 2.3%. Their payout ratio is around 63%, which is within my safety margin, but a little on the high side, so it will need to be watched.
This puts me at $514.72/$600.00 for my annual passive income goal for 2016, and $42.89/$100.00 for my average monthly passive income long term goal.
I’m very excited to own the company that provides a majority of my weekend food.