This Stock Just Doubled Its Dividend

The Wendy's Company (NASDAQ:WEN) released its fourth-quarter earnings earlier this month. The numbers were impressive with the company's total revenue rising by 13% year over year to $536.5 million. Its operating profit of $84 million was also a 9% improvement.

The results were so positive that the company doubled the rate of its quarterly dividend. Instead of $0.125, shareholders will now be receiving $0.25 every three months. At $1 per year, the stock is now yielding 4.5%. That's more than double the S&P 500 average of about 1.7%. On a $25,000 investment, investors can be collecting $1,125 in dividends from Wendy's stock over the course of a full year. Last year, the company also raised its dividend, albeit at a more modest rate of 4.2%

In addition to the dividend boost, Wendy's management also announced plans to buy back $500 million worth of shares. By doing so, the company can allow investors to benefit both from a higher dividend while also supporting its stock price and helping it rise in value. Last year, Wendy's had a modest performance, with the stock falling 5%. Although that wasn't as bad as the S&P 500's decline of 19%, it wasn't as strong as the 8.8% gains that Wendy's investors profited from in 2021.

Read:

• Addressing the USA’s 200 to 1 Security Protection Gap is a Serious Concern for Tech Companies

• Latest Set of FDA Fast Track Designations Causing Optimism in Biotech Sector

• Biotech Sector to Unveil New Data and Developments at 2022 SABCS in San Antonio

• Biotech Sector Witnessing Growing Revenue Potential in Ongoing Battle Against Pancreatic Cancer

• New Biotech Sector Drug Combinations Target a Drop in Pancreatic Cancer Mortality Rates

Overall, with Wendy's business looking strong and relatively resilient amid inflation, it could be a decent stock to load up on right now, especially with its yield looking much better than before. At 14 times earnings, it's also a decent value buy.