New Buy - Restaurant Brands International

Today I made my last purchase of the year. I always wanted to have an exposure to Tim Hortons and Burger King so I went ahead and purchased 11 shares of Restaurant Brands International, ticker QSR.TO on the Toronto Stock Exchange.

Restaurant Brands International is a multinational fast food holding company that was formed in 2014 when Tim Hortons and Burger King merged in a $12.5 billion deal. In 2017, RBI acquired Popeyes Louisiana Kitchen and became the fight-largest operator of fast food restaurants in the world.




Purchase
I bought 11 shares of QSR.TO for $71.70 per share. This is a new position in my portfolio. Eleven shares is not much, but I plan to add to this position later on, especially if the share price remains around $70 or less. I believe that QSR is a great holding company with great growth prospects.


Dividend
The company pays a quarterly dividends in US currency and when converted to CAD dollars it comes up to 3% yield. Not a bad payout from a solid, growing business. It’s also worth mentioning that the dividend was doubled in March 2018 and I expect more dividend increases in 2019.


Dividend Payout Ratio
The current dividend payout ratio sits at 46% making it a safe investment for someone who relies on dividend income.


Ex-Dividend Date
The ex-dividend date for QSR is December 14, 2018 and the dividend payment is on January 4, 2019. By purchasing the shares today, I will receive my very first payout as early as next month. Right now is a good time to buy to get the dividend as early as possible.

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That's it! That was my last purchase for this year. Let me know what you think of it.

6 comments:

  1. nice German

    Definately one of my favorite stocks. I saw it sitting round 70 bucks sometime last week and i was tempted to add more. Great company with lots of potential.

    Enjoy those divs!

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    1. Thanks! 70 bucks is not a bad deal considering the stock was around $85 a few months ago.

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  2. Nice buy, a very solid brand for sure.

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  3. I sold 55 shares on 12 Oct for $75.52 for a slight profit. I just don't see growth in the donut and burger business. I have never ate at Popeye's so no comment there. Once it dropped below it's 50 and 200 DMA i dumped it. I like the 3.3% dividend, I just don't see any growth in that dividend. Good luck with your purchase.

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    1. Thank you for your opinion. The growth will come from emerging markets. US and Canada is a very mature market. At home, they will grow with demographic. I do speculate on another dividend increase in 2019 which should be above inflation rate.

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