DPZDomino's Pizza, Inc.Stock — Consumer Discretionary
Yield
2.54%
$7.96 indicated at $313.61
Dividend
$1.99/qtr
Declared Oct 6, 2026, payable Dec 30, 2026; raised from $1.74
Payout ratio
43.8%
Trailing, per StockAnalysis
Pays
Quarterly
12 years of growth; 17.41% 5-year growth
House verdict
Covered, compounding — a franchised cash machine. A $1.99 quarterly dividend, raised from $1.74, at a 43.8% trailing payout and about 38% of cash flow. Twelve years of growth at a 17.41% five-year pace, and Q3 2026 EPS of $4.60 beat estimates — franchise cash flow doing the work.
Key risk: Heavy debt from buybacks — book value is negative; the dividend rides franchise cash flow, not a fortress balance sheet.
Changes if: Franchise cash flow slips or the payout passes ~60%.
- ✓Covered by earnings 43.8% trailing payout, per StockAnalysis.
- ✓Covered by cash flow About 38% of cash flow paid out.
- ✓Compounding 12 years of growth; 17.41% five-year dividend growth; raised again in 2026.
What this grade doesn't say: It screens the dividend only — covered, real, compounding. It says nothing about valuation or price: a well-covered payer can still be overpriced, and its price can still fall.