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Jefferies Remains Bullish on Dunkin Brands after Dividend Initiated (DNKN)

Quick service restaurant franchisor Dunkin Brands Group, Inc. ( DNKN ) on Wednesday caught some further positive commentary from analysts at Jefferies & Co.

The firm reiterated its "Buy" rating and $32 price target on DNKN, which suggests a 12.5% upside to the stock's Tuesday closing price of $28.43.

A Jefferies analyst commented, "While generally expected, the dividend is slightly higher than anticipated at a 2% yield, and compares favorably to competitors in QSR (vs. MCD 2.8%, YUM 1.7%, SBUX 1.4%). In our view, the dividend should help to broaden the potential investor base for the stock."

Dunkin Brands shares were unchanged in premarket trading Wednesday.

The Bottom Line

Shares of Dunkin Brands Group ( DNKN ) will have a 2.11% dividend yield, based on the company's initial dividend payments, and last night's closing stock price of $28.43. The stock has technical support in the $26-$27 price area. The shares are trading near all-time highs of $31-$32 a share.

Dunkin Brands Group, Inc. ( DNKN ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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