Today’s purchase: Wingstop

 

Who doesn’t love chicken wings? I’m serious … that’s not a rhetorical question. I mean, I know vegetarians and vegans won’t touch them. Other than that, though, chicken wings are generally pretty well received, right?

I know I’m a fan. You can’t go wrong with wings, especially when they’re tossed in mango habanero or garlic parmesan sauce. And you know what goes great with wings (other than ranch, bleu cheese and celery)? Dividends!

I haven’t had my wings with a side of dividends just yet, but I will soon enough as I picked up a few shares of Wingstop for a combined $89.99 earlier today.

Wingstop

Wingstop (WING) is pretty new to the dividend game – it just started distributing a regular dividend last year, but I have a feeling it could end up being a great dividend-growth stock for a long time to come.

Why? Good question. I don’t have a lot to base that theory on, so consider it a hunch. Or maybe it’s more of an educated guess. I obviously can’t predict the future, and have no idea what the company has up its sleeve dividend-wise, but Wingstop’s commitment to paying a quarterly divi is a good start.

Oh, and then there’s the special dividend it will be throwing to shareholders in less than a week’s time. That’s right, shareholders as of tomorrow – which means you already have to own the shares (so don’t run out and by some tomorrow) – will be paid a special dividend of $3.17 a share on February 14. That’s something, right?

Couple the quarterly dividend with the special dividend and the company, which is still pretty young (founded in 1994), is on the right track toward making some noise in the DGI space.

Considering Wingstop’s apparent willingness to reward shareholders with dividends, all it needs to keep the train rolling and boost those payouts is more revenue, right? Well, it’s on the right track in that respect, too. It reported $91,359,000 in revenue at the end of 2016, $77,969,000 at the end of 2015 and $67,449,000 at the end of 2014. The growth is obviously there, the company just needs to keep it up.

My purchase bumped my position up to three shares at an average cost of $46.13. Wingstop’s annualized dividend is just $0.28, but that means it has plenty of room to grow.

March on!

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