DIN Stock: A High-Yield Dividend Play with Major Upside Potential?
March 12, 2025
DIN Stock Could Provide Robust Income & Capital Appreciation
As Nathan Rothschild said, “The best time to buy is when there’s blood in the streets.”
While not every stock is a good investment when investors are panicking and selling, one can find amazing companies selling for big discounts. You just have to look past the short-term struggles.
Dine Brands Global Inc (NYSE:DIN) is one such stock. It offers everything an income investor could want: a high-yield dividend and the potential for serious upside.
Right now, though, DIN stock is priced like we’re still in the midst of the 2020 health crisis or in the depths of Great Recession of 2008/2009, even though the restaurant industry has made a strong recovery.
However, this disconnect presents an opportunity.
A little about the company…
Dine Brands Global owns, franchises, and operates restaurants in the U.S. and internationally. It is very likely you have heard about, dined at, or passed by one of the company’s restaurants if you live in the U.S.
The company operates through six segments: Applebee’s Franchise Operations; International House of Pancakes (IHOP) Franchise Solutions; Fuzzy’s Franchise Operations; Rental Operations; Financing Operations; and Company-Operated Restaurant Operations.
Dine Brands owns and franchises three restaurant concepts/brands:
- Applebee’s Neighborhood Grill + Bar offers casual dining
- IHOP known for its breakfast menu, but also offers lunch and dinner options
- Fuzzy’s Taco Shop offers baja-style Mexican food
Rosy Financial Outlook Could Mean Robust DIN Stock Performance
Dine Brands Global is giving a steady financial performance, and the outlook is decent. Remember: the stock market is a forward-looking animal. It cares a lot more about what’s ahead than what has already happened.
Total revenue for Dine Brands Global in 2024 amounted to $812.3 million, slightly down from its $831.1 million in 2023. The company’s adjusted net income for 2024 was $79.8 million, or earnings per diluted share of $5.34. In 2023, its adjusted net income was $101.4 million, or earnings per diluted share of $6.65. (Source: “Dine Brands Global, Inc. Reports Fourth Quarter and Fiscal Year 2024 Results,” Dine Brands Global Inc, March 5, 2025.)
Of course, Dine Brands Global’s 2024 financial performance wasn’t that great, but there’s stability ahead.
Wall Street analysts are projecting Dine Brands to report more than $861.0 million in revenue in 2025, with high estimates around $880.0 million. As for profitability, analysts anticipate earnings per share (EPS) of $5.27, with high EPS estimates hovering around $5.86. (Source: “Analysis,” Yahoo! Finance, March 7, 2025.)
For 2026, average revenue estimates are around $876.45 million, with high estimates at $905.3 million. EPS are expected to be around $5.39, with high estimates at $5.95 per share.
If Dine Brands beats the expectations, it could mean a solid move in DIN stock.
DIN Stock: A Cash Machine for Income Investors?
For income investors, DIN stock stands out.
Dine Brands currently pays an annual dividend of $2.04 per share, in quarterly payments of $0.51 per share, translating to a whopping dividend yield of eight percent. If you were to compare it to others in the restaurant industry, DIN stock really offers an attractive payout.
There’s room for some income growth here, too.
Prior to the health crisis of 2020, DIN stock paid a quarterly dividend of around $0.70 per share. As the company’s financials improve, investors could get rewarded quite nicely. Assuming Dine Brands’ dividend goes back to $0.70 per share, or $2.80 per share on annual basis, this would mean a big jump in income.
The Lowdown on DIN Stock
DIN stock offers a compelling mix of high-yield dividend and upside potential. The past few quarters haven’t been that great for Dine Brands, but the business model that’s in place could continue to provide it with the opportunity to generate steady cash flow and pay inflation-crushing dividends to its shareholders.
As it stands, DIN stock is trading at a deep discount, so it could really be worth paying close attention to for patient, long-term investors.
Institutional investors love DIN stock, too. As per the most recent data, 97.62% of all outstanding shares were owned by institutional investors. The three biggest holders are AllianceBernstein, BlackRock, and The Vanguard Group.
