The Dynamic Dividend

Darden Matches Q4 Estimates, Ups Dividend by 34%

Darden Restaurants (DRI) reported fourth quarter results that met Wall Street’s expectations after the closing bell. The operator of full-service restaurants including Red Lobster and Olive Garden also announced a 34% increase to its dividend, pushing its payout higher for the seventh consecutive year.

Darden posted adjusted earnings of $1.00 per share on $1.99 billion in revenue, which matched the consensus analyst estimates. Net earnings rose 19% year-over-year, while net revenue from continuing operations gained 7%.

Darden is the first company from my article forecasting July dividend hikes (“These Six Companies Will Raise Their Dividends in July”) to increase its payout, technically jumping the gun by a matter of hours. I predicted a raise of 10-20%, so this announcement far exceeds my expectations.

Shares of DRI closed Thursday’s session trading at $49.76, where they now feature a 3.46% dividend yield, which is among the highest in the restaurant industry.