Should You Buy Wendy's Stock for Its 7.1%-Yielding Dividend?
The restaurant stock cut its payout a year ago.
Overview
Wendy's (NASDAQ: WEN) stock has been rallying of late, prompting some to wonder if another meme-fueled rally could be underway. The fast-food giant hasn't been taken seriously in recent years as a top investment option; in five years, its valuation has crashed by a whopping 65%.
Amid its decline this year, its dividend yield has shot up to a mouthwatering 7.1%, which is well above the S&P 500 average of only 1.1%. If the payout is safe, that could provide investors with some incentive to buy and hold. But is the dividend really sustainable, and if it is, should you buy Wendy's stock?
Image source: Getty Images.
Details
Source
Originally published at www.fool.com.
Related Articles
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.