DIN Stock: An Over-8.5%-Yielding Contrarian Play
September 18, 2025
DIN Stock’s Big Dividend Could Be Too Good to Ignore
When everyone seems to be piling into the same trendy sectors, the best opportunities often lie in the corners of the market no one wants to touch.
Rising interest rates, a slowing U.S. economy, and falling consumer sentiment have created plenty of fear. And it can’t be stressed enough: fear causes mispricing. Income investors who can be patient and spot these mispriced opportunities can reap immense rewards.
One such mispriced opportunity could be Dine Brands Global Inc (NYSE:DIN).
While the DIN stock price has been beaten down, the dividend here is impressive and backed by solid fundamentals.
In other words, DIN stock could be a classic contrarian setup. Investors are worried about the macro headlines, but the fundamentals supporting the payout remain in place.
What Does Dine Brands Global Do?
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 its 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 is known for its breakfast menu, but also offers lunch and dinner options
- Fuzzy’s Taco Shop offers Baja-style Mexican food (Source: “Profile,” Yahoo! Finance, accessed September 10, 2025.)
DIN Stock Chart: There’s Light at the End of the Tunnel
Looking at DIN stock chart, the steep downtrend from the mid-$40s to the low-$20s over the past 18 months is very visible, so it could be enough to discourage anyone looking at it.
The stock’s 50-week moving average (MA) sits near $25.71, while the 200-week MA is up at $45.62. Both of these MAs are above the price, suggesting that the intermediate-term and long-term trends are pointing downwards.
What’s interesting to note though is that, since April, DIN stock appears to have been forming a double bottom around the $20.00 level. Just so you know, this is a classic pattern of a potential trend reversal; it forms when prices touch certain a support level twice and bounce higher.
Even more encouraging: volume also spiked each time that DIN stock tested the $20.00 level, a sign of capitulation and possible accumulation.
Also, take a look at the moving average convergence-divergence (MACD) momentum indicator. It has been trending higher and could be entering positive territory. This is bullish. It tells us that buyers are stepping in and could take DIN stock higher.
All in all, DIN stock seems to be in rough shape at first sight, but the chart suggests that selling pressure may be exhausting itself, which could be nothing but good news for shareholders or investors who are looking to own it.
Chart Courtesy of StockCharts.com
Dividend Yield: The Main Attraction of DIN Stock
At the time of writing, DIN stock trades around $23.41 per share, down from the mid-$40s range a year ago. Yet the company continues to pay a quarterly dividend of $0.51 per share, or $2.04 annually.
That works out to a dividend yield north of 8.5%. This is well above the average yield for restaurant stocks and the broader S&P 500. For income investors, that’s an eye-catching number.
Now, given how much bad news is out there about consumer discretionary stocks, one might be asking if the dividend is safe with DIN stock. And that’s a very fair question.
Looking at the big picture: while earnings at Dine Brands have come under pressure, don’t forget that the franchise fees and brand licensing business model provide the company with steady cash flows. This certainly gives it a cushion for the dividends.
But if you look at it from an earnings perspective, Dine Brands isn’t struggling and it doesn’t have trouble paying $2.04 in annual dividends.
Consider this: Wall Street analysts are projecting earnings per share of $4.23 and $4.62 in 2025 and 2026, respectfully. (Source: “Analysis,” Yahoo! Finance, last accessed September 10, 2025.)
So, the dividend payout for 2025 is 48% of the year’s earnings and the payout for 2026 is 44% of the year’s earnings.
It may sound farfetched at the moment, but Dine Brands could realistically bump its dividend even higher and still have income to comfortably cover it.
The Lowdown on DIN Stock
DIN stock stands out right now. It’s offering one of the most attractive dividends yields around while trading at distressed levels. As the saying goes, “the best time to buy is when there’s blood in the streets.” And Dine Brands stock might just be one of those rare opportunities.
For income investors seeking yield and potential rebound upside, DIN stock deserves a spot on the watch list. Dine Brands offers a more than 8.5% dividend yield.
Lastly, as per the most recent data, DIN stock remains a favorite of institutional investors, with them holding 85.82% of the outstanding shares. Three of the biggest institutional investors are BlackRock Inc, The Vanguard Group Inc., and CIBC World Markets. (Source: “Holders,” Yahoo! Finance, last accessed September 10, 2025.)
