Wendys Co (NASDAQ: WEN) is having an incredibly strong start to the trading session this morning after making an announcement in the extended session yesterday. First and foremost, the company announced that it would be raising its quarterly dividend. It also announced that the Board of Directors has approved a buyback plan. Of course, this news is leading to excitement among investors, sending the stock on a run for the top. Today, we’ll talk about the news, what we’re seeing from the stock, and what we’ll be watching for with regard to WEN ahead.
WEN Gains On Dividend Increase And Buyback Plan
As mentioned above, Wendys is having a strong day in the market today after announcing plans that would reward shareholders. First and foremost, the company said that it would be raising its quarterly dividend. The new quarterly dividend is $0.085 per share, a 21% increase over the previous dividend amount.
Also, in the release, WEN announced that its board of directors has approved a share buyback program. This program gives the company the ability to purchase up to $175 million of its own common stock. The plan will expire in March of 2019.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market, and in the case of Wendys, the news was overwhelmingly positive. Not only will the company be increasing dividends, it will be taking shares out of the pool through its newly approved buyback program. So, it’s no surprise to see that the stock is making a run for the top today. Currently (10:12), WEN is trading at $16.56 per share after a gain of $0.86 per share or 5.48% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on WEN. In particular, we’re interested in following the continued growth of the company as well as watching to see how the company continues to reward its shareholders. Nonetheless, we’ll continue to follow the story and bring the news to you as it breaks!
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