LOUISVILLE, KY. — The board of directors at Yum! Brands Inc. has approved a 19% increase in the company’s quarterly dividend, raising the quarterly cash dividend to 25c per share from 21c per share, previously. The increase will be effective with the dividend payment to be distributed on Nov. 5, to shareholders of record at the close of business on Oct. 15.

“I am pleased to inform our shareholders we have increased our quarterly dividend 19%, the sixth consecutive annual increase since we initiated a quarterly dividend in 2004,” said David C. Novak, chairman and chief executive officer. “Yum! Brands’ consistent performance and substantial annual free cash flow generation enables us to return significant cash to our shareholders through both a meaningful quarterly dividend and share buybacks.

“Our first priority for the operating cash we generate is to continue to use a disciplined approach as we reinvest in the global growth opportunities of our business along with our franchise partners.”

The Yum! dividend policy continues to target a payout ratio of 35% to 40% of annual net income.