how to buy dnkn?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Valuing Dunkin Brands Group stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Dunkin Brands Group's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Dividend payout ratio: 28.55% of net profits

Recently Dunkin Brands Group has paid out, on average, around 28.55% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.52% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Dunkin Brands Group shareholders could enjoy a 1.52% return on their shares, in the form of dividend payments. In Dunkin Brands Group's case, that would currently equate to about $1.61 per share.

While Dunkin Brands Group's payout ratio might seem fairly standard, it's worth remembering that Dunkin Brands Group may be investing much of the rest of its net profits in future growth.

Dunkin Brands Group's most recent dividend payout was on 9 September 2020. The latest dividend was paid out to all shareholders who bought their shares by 31 August 2020 (the "ex-dividend date").

Over the last 12 months, Dunkin Brands Group's shares have ranged in value from as little as $0 up to $0. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Dunkin Brands Group's is 0.915. This would suggest that Dunkin Brands Group's shares are less volatile than average (for this exchange).

Dunkin' Brands Group, Inc. , together with its subsidiaries, franchises and licenses quick service restaurants in the United States and internationally. The company operates through five segments: Dunkin' U. S. , Dunkin' International, Baskin-Robbins International, Baskin-Robbins U. S. , and U.

To preview, I think Dunkin' could be a safe dividend stock for opportunistic investors, but I would not bet this stock can beat the market average from where it trades today. Here's why.

Comparable sales at Dunkin' measure sales at locations open at least 13 months. In April, comp sales fell 32% year over year at U.S. Dunkin' locations. But in June, comp sales were only down 9% -- a steady improvement. Furthermore, comp sales at U.S. Baskin-Robbins locations are already higher than pre-coronavirus levels. In short, this business is coming back.

Recent decisions by Dunkin's management confirm the improving health of the business. When reporting its earnings for the first quarter of 2020, management suspended its dividend to preserve cash. However, the dividend was reinstated with the encouraging trends in the second quarter of 2020 at the end of July.

There's more. In the July 30 report, Dunkin' announced it expected a whopping 800 locations to close permanently, which doesn't look bullish on the surface. But these were underperforming locations (many weren't even stand-alone) and represent a mere 2% of total sales. These closures are being partly offset by opening new locations in new markets like California and Texas. And franchisees plan to hire 25,000 new workers as we move further beyond the worst of the pandemic.

These points all lead me to believe Dunkin' is back.

Because of how it's structured, Dunkin' doesn't offer investors much top-line growth. It makes money by collecting franchise fees, royalties, license revenue, and (in some cases) rental payments from the property it owns. But I wouldn't call these growth drivers.

For example, consider Dunkin' has a consumer-packaged goods (CPG) business, selling items like coffee and creamers in third-party retail outlets. CPG now does over $1 billion in sales annually. However, relatively little of this makes it back to Dunkin'. It generates revenue from licensing the brand instead of the sale directly, and it's recorded in the company's "other" revenue segment. This segment recorded just $31 million in revenue in the first half of 2020, and the segment includes additional items not even related to CPG.

The same thing goes for sales at Dunkin' and Baskin-Robbins. Because Dunkin' is completely franchised, there's a big difference between systemwide sales and revenue. Sales are what the franchisees record in the restaurant. What the franchisees pass on to Dunkin' is counted as corporate revenue. It's a relatively small slice of the pie. For example, in Q2 Dunkin' had $2.5 billion in systemwide sales, but it only recorded $287 million in total company revenue.

This structure is advantageous from a cash-flow perspective. Money regularly flows in, and ongoing costs are low. Therefore, Dunkin' has cash to reward shareholders via buybacks and dividends. And the dividend is a big part of a Dunkin' investment.

DNKN data by YCharts

Allow me to break down this busy chart. Over the last five years, Dunkin's dividend is up around 50% -- each year it raises the payment a little. When a dividend payment goes up, the dividend yield goes up. But when the stock price goes up, the yield goes down. These two factors constantly counteract each other, which is why dividend yield fluctuates.

The rising value of Dunkin' stock roughly matches the growth of dividend, keeping the dividend yield relatively stable at around 2% over that time. Right now, Dunkin's dividend yield looks historically low, but this accounts for the missed dividend payment in the first quarter. If you cut the company some slack for this one-time issue, the dividend yield actually looks perfectly normal right now.

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