Caution Advised: Bloomin' Brands Ex-Dividend Date Approaches Amid Sustainability Concerns

Bloomin' Brands' (BLMN) ex-dividend date is Aug 19, with a dividend payment of $0.15 per share on Sept 3. The trailing yield is 8.3% based on the current share price of $7.26. However, the company paid out 86% of its earnings as dividends last year, and its free cash flow was only 173% of its dividend payments, indicating a potential risk of a drop in earnings and unsustainable dividend payments.

Bloomin' Brands, Inc. (BLMN), a leading player in the restaurant industry, has recently announced its upcoming dividend payment. The company will pay a dividend of $0.15 per share on September 3, 2025, with the ex-dividend date set for August 19, 2025. The forward annualized dividend yield is 8.26%, based on the current share price of $7.26 [1].

Dividend Analysis

Bloomin' Brands' dividend payout has remained stable, with a consistent quarterly payment of $0.15 per share. The company's trailing yield is 8.3%, which is relatively high compared to the industry average. However, it is essential to consider the company's financial health when evaluating its dividend sustainability.

Financial Health Indicators

Last year, Bloomin' Brands paid out 86% of its earnings as dividends, which is a significant portion of its earnings. Additionally, the company's free cash flow was only 173% of its dividend payments, indicating a potential risk of a drop in earnings and unsustainable dividend payments. These metrics suggest that while the dividend yield is attractive, investors should closely monitor the company's financial performance to assess the long-term sustainability of its dividend payouts [1].

Upcoming Dividend Capture Strategy

Investors looking to capitalize on Bloomin' Brands' upcoming dividend payment can employ a dividend capture strategy. This involves purchasing the stock before the ex-dividend date and selling it once the price recovers. Based on historical data, the average time taken for the stock price to recover after the ex-dividend date is approximately 2.7 days [1].

Conclusion

Bloomin' Brands' dividend payment offers an attractive yield, but investors should exercise caution due to the company's high dividend payout ratio and relatively low free cash flow relative to its dividend payments. Careful monitoring of the company's financial performance and earnings growth is crucial for assessing the long-term sustainability of its dividend payouts.

References

[1] https://www.dividend.com/stocks/consumer-discretionary/gaming-lodging-restaurants/restaurants/blmn-bloomin-brands-inc/