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Why the dividend investor may take a look at NASDAQ:WEN.

By Mill Chart

Last update: Oct 13, 2023

Consider WENDY'S CO/THE (NASDAQ:WEN) as a top pick for dividend investors, identified by our stock screening tool. NASDAQ:WEN shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Understanding NASDAQ:WEN's Dividend

ChartMill assigns a Dividend Rating to every stock. This score ranges from 0 to 10 and evaluates the different dividend aspects, including the yield, the growth and sustainability. NASDAQ:WEN scores a 7 out of 10:

  • WEN has a Yearly Dividend Yield of 5.11%, which is a nice return.
  • Compared to an average industry Dividend Yield of 3.35, WEN pays a better dividend. On top of this WEN pays more dividend than 94.29% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 2.76, WEN pays a better dividend.
  • The dividend of WEN is nicely growing with an annual growth rate of 20.25%!
  • WEN has been paying a dividend for at least 10 years, so it has a reliable track record.

Deciphering NASDAQ:WEN's Health Rating

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:WEN has achieved a 5 out of 10:

  • A Current Ratio of 2.48 indicates that WEN has no problem at all paying its short term obligations.
  • The Current ratio of WEN (2.48) is better than 87.86% of its industry peers.
  • WEN has a Quick Ratio of 2.46. This indicates that WEN is financially healthy and has no problem in meeting its short term obligations.
  • WEN has a Quick ratio of 2.46. This is amongst the best in the industry. WEN outperforms 89.29% of its industry peers.

Assessing Profitability for NASDAQ:WEN

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:WEN has earned a 6 out of 10:

  • WEN has a Return On Equity of 48.90%. This is amongst the best in the industry. WEN outperforms 95.71% of its industry peers.
  • The last Return On Invested Capital (5.77%) for WEN is above the 3 year average (5.15%), which is a sign of increasing profitability.
  • WEN has a better Profit Margin (8.86%) than 74.29% of its industry peers.
  • WEN's Operating Margin of 16.99% is fine compared to the rest of the industry. WEN outperforms 75.71% of its industry peers.
  • WEN has a Gross Margin of 62.48%. This is in the better half of the industry: WEN outperforms 71.43% of its industry peers.
  • WEN's Gross Margin has improved in the last couple of years.

Our Best Dividend screener lists more Best Dividend stocks and is updated daily.

Check the latest full fundamental report of WEN for a complete fundamental analysis.

Keep in mind

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.

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