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

By Mill Chart

Last update: Nov 3, 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.

Assessing Dividend for NASDAQ:WEN

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:

  • With a Yearly Dividend Yield of 5.27%, WEN is a good candidate for dividend investing.
  • WEN's Dividend Yield is rather good when compared to the industry average which is at 3.22. WEN pays more dividend than 94.93% of the companies in the same industry.
  • WEN's Dividend Yield is rather good when compared to the S&P500 average which is at 2.78.
  • On average, the dividend of WEN grows each year by 20.25%, which is quite nice.
  • WEN has paid a dividend for at least 10 years, which is a reliable track record.

Understanding NASDAQ:WEN's Health Score

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:WEN scores a 5 out of 10:

  • A Current Ratio of 2.48 indicates that WEN has no problem at all paying its short term obligations.
  • WEN's Current ratio of 2.48 is amongst the best of the industry. WEN outperforms 87.68% of its industry peers.
  • A Quick Ratio of 2.46 indicates that WEN has no problem at all paying its short term obligations.
  • WEN has a better Quick ratio (2.46) than 89.13% of its industry peers.

Assessing Profitability for NASDAQ:WEN

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:WEN was assigned a score of 6 for profitability:

  • With an excellent Return On Equity value of 48.90%, WEN belongs to the best of the industry, outperforming 95.65% of the companies in the same industry.
  • The 3 year average ROIC (5.15%) for WEN is below the current ROIC(5.77%), indicating increased profibility in the last year.
  • Looking at the Profit Margin, with a value of 8.86%, WEN is in the better half of the industry, outperforming 73.91% of the companies in the same industry.
  • WEN's Operating Margin of 16.99% is fine compared to the rest of the industry. WEN outperforms 74.64% of its industry peers.
  • The Gross Margin of WEN (62.48%) is better than 71.01% of its industry peers.
  • In the last couple of years the Gross Margin of WEN has grown nicely.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of WEN contains the most current fundamental analsysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.

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WENDY'S CO/THE

NASDAQ:WEN (2/21/2024, 7:15:29 PM)

Premarket: 17.85 -0.02 (-0.11%)

17.87

-0.1 (-0.56%)

WEN News

News Image21 hours ago - Seeking AlphaWendy's falls after J.P. Morgan shifts to neutral rating

J.P. Morgan's downgrade of Wendy's (WEN) stock and concerns about increased price promotion in the restaurant industry could impact the company's margins. Read more.

News Image7 days ago - The Motley FoolWendy's (WEN) Q4 2023 Earnings Call Transcript

WEN earnings call for the period ending December 31, 2023.

News Image7 days ago - Investor's Business DailyShake Shack Vaults On Earnings. Take Profit Or Hold The Shares?

Shake Shack bolted about 20% on its Q4 results. But investors might want to hold for more gains. Burger King parent rises while Wendy's retreats.

News Image7 days ago - Seeking AlphaWendy's declares $0.25 dividend (NASDAQ:WEN)

Wendy's (WEN) declares $0.25/share quarterly dividend, in line with previous. Forward yield 5.19% Payable March 15; for shareholders of record March 1; ex-div F

News Image7 days ago - Seeking AlphaWendy's Non-GAAP EPS of $0.21 misses by $0.02, revenue of $540.7M misses by $6.05M (NASDAQ:WEN)

Wendy's (WEN) reports Q4 earnings, missing expectations by $0.02 EPS and $6.05M in revenue.

News Image7 days ago - The Wendy’s CompanyTHE WENDY'S COMPANY REPORTS FOURTH QUARTER AND FULL YEAR 2023 RESULTS

/PRNewswire/ -- The Wendy's Company (Nasdaq: WEN) today reported unaudited results for the fourth quarter and full year ended December 31, 2023. "The Wendy's®...

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