Yum China Holdings (YUMC) will raise its quarterly dividend by twenty percent to of $0.12 per share in the fourth quarter of 2018. This marks the first dividend hike since the restaurant operator initiated a 10 cent quarterly payment last year.

The increased dividend is payable as of the close of business on December 18, 2018 to stockholders of record as of the close of business on November 27, 2018. A new annual dividend of 48 cents per share yields 1.7% at a stock price of $89.67.

"With a solid balance sheet and strong cash generation, we returned over $132 million of capital to our shareholders through a combination of share buybacks and dividends in the third quarter. We are pleased to announce that we increased our quarterly cash dividend by 20% to $0.12 per share, and expanded our share repurchase authorization by $850 million to a total of $1.4 billion. We are committed to continuing to create long-term value for our shareholders," said Jacky Lo, CFO of Yum China.

Yum China Holdings, Inc. is a licensee of Yum! Brands in mainland China. It has exclusive rights in mainland China to KFC, China's leading quick-service restaurant brand, Pizza Hut, the leading casual dining restaurant brand in China, and Taco Bell, which opened its first restaurant in China at the end of 2016. Yum China also owns the Little Sheep and East Dawning concepts outright. Yum China became a public company on October 17, 2016 when it was spun off from YUM! Brands.