Yum dividend
Yum's base dividend rises from $3.12 per share to $3.24 and then $3.36. Yum generated $1,639 million of free cash flow in 2025, while dividends, buybacks and debt compete for that cash.
How much does Yum pay in dividends per share?
The base dividend rises from $3.12 per share to $3.24 and then $3.36. That is roughly 4% annual growth, below the recent record, because debt and buybacks compete for cash. The bear case holds the dividend at $3.00 annually, preserving the current quarterly rate. The bull case reaches $3.20, $3.48 and $3.76 as stronger free cash flow supports larger increases. Yum generated $1,639 million of free cash flow in 2025, but net debt was $11,601 million at June 2026.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 5.55 | 5.22 | 5.59 | 4.57 | 5.21 |
| Real free cash flow per share | 5.58 | 4.78 | 4.29 | 3.67 | 4.64 |
| − Dividends paid, per share | 2.81 | 2.64 | 2.38 | 2.24 | 1.96 |
| = FCF not paid out, per share | 1.06 | 0.84 | 2.07 |
What this means. Book value per share is negative because the company owes more than it owns on paper, partly after buying back shares.
Does Yum's dividend fit its cash flow?
Capital allocation puts pressure on the cash model. In 2025, Yum paid approximately $789 million in dividends and spent $552 million repurchasing shares. Buybacks can increase EPS by reducing the share count, but they do not improve a restaurant or reduce franchisee debt. Management later acknowledged that first-half repurchases used both free cash flow and revolver borrowing.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 1,639 | 1,432 | 1,318 | 1,148 | 1,476 |
| − Dividends paid | 789 | 752 | 678 | 649 | 592 |
| − Share buybacks | 552 | 441 | 50 | 1,200 | 1,591 |
| = Free cash flow not paid out | 298 | 239 | 590 | ||
| = Paid out more than the free cash flow | 701 | 707 |
What this means. In 2022 and 2021, the company paid shareholders more cash than it generated, so it had to use savings or borrow money to cover the difference.
What could change Yum's dividend?
The forecast would move toward the bear case if Taco Bell traffic remains weak through October 2027–2028, discounting damages margins, or franchisee cash returns delay openings during 2028 and 2029. Refinancing pressure or an adverse tax outcome would further reduce buyback capacity and could compress the multiple.
What is Yum's dividend yield at today's price?
| Today (Oct 19, 2026) | |
|---|---|
| Share price | 150.51 |
| P/E, last 12 months (calculated) | 18.9x |
| P/E, next 12 months (calculated) | 21.0x |
| Dividend yield (calculated) | 2.0% |
What this means. The price-to-book ratio is not meaningful because the company owes more than it owns, making its book value negative.