A Top Dividend Stock for Passive Income

One of the best reasons to buy stocks is for the dividend income they can provide. Earning income from dividend stocks is even more important to investors in the current struggling stock market. When selecting stocks, it is crucial to find attractive options that are undervalued and offer an appealing dividend yield.
Pizza Pizza Royalty (TSX:PZA) is a top dividend stock to consider, especially if you’re looking to boost your passive income. One of the main reasons is its makeup as a royalty corporation. Pizza Pizza earns a royalty from sales at each of its franchise locations across Canada, allowing investors to benefit from consistent dividend income without worrying about the profitability of individual restaurants.
The company is also one of Canada’s most recognized quick-service restaurant chains, which contributes to a consistent customer base and steady revenues. With hundreds of franchises nationwide, Pizza Pizza benefits from the collective success of all its outlets. Additionally, the company has minimal expenses, focusing mainly on collecting royalties, paying small administration expenses, and taxes. This allows it to return a significant portion of its earnings to investors in the form of dividends.
Pizza Pizza’s strong brand recognition, extensive presence, and in-house delivery service make it a top dividend stock in the long run. The company is relatively resilient to economic downturns, as low-cost, fast-food options like pizza tend to remain popular even during challenging times. In fact, Pizza Pizza weathered the pandemic better than any other quick-service restaurant, highlighting its stability compared to its competitors in the restaurant industry.
In addition to its stability and dividend income, Pizza Pizza offers growth potential. With the pandemic behind us, there is room for further expansion and growth across Canada, especially in markets where the company has a lower presence. Pizza Pizza has also started expanding into Mexico. Furthermore, the company continually innovates its menu to cater to a wide range of dietary preferences and needs, which can attract a broader customer base and drive sales growth.
If you’re looking to boost your income and find a high-quality dividend stock for your portfolio, Pizza Pizza, with its more than 6.1% dividend yield, is an excellent investment choice.

https://www.claytoncountyregister.com/news2/this-6-1-dividend-stock-is-my-top-buy-for-income-right-now-2/89767/

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