In October 2014, Starboard Value CEO and co-founder Jeffrey Smith made headlines for taking over Darden Restaurants DRI by clearing the board and making himself the chairman with an 8.8% stake in the company.
His goal was to make its subsidiaries, Long Horn Steakhouse and Olive Garden, more profitable.
As of early Tuesday, the activist investor disclosed a 9% stake in website building service Wix.com WIX, which touts millions of registered users worldwide.
Here are two dividend stocks Starboard Value holds for the long-term:
- Papa John’s International Inc. PZZA, with 5,650 locations, is one of the world’s largest pizza delivery companies. It offers a dividend yield of 2.27% or $1.68 per share annually, utilizing quarterly payments, with a decent track record of increasing its dividends in the past two years. During the second quarter of 2022, Papa John’s repurchased 452,206 shares of common stock for $42.8 million pursuant to its share repurchase program. As of July 29, the company had $329.8 million remaining available for repurchase under the outstanding authorization.
- Humana Inc. HUM, one of the largest private health insurers, is offering a dividend yield of 0.63% or $3.15 per share annually, through quarterly payments, with a strong track record of increasing its dividends for ten years. The company, which focuses on administering Medicare Advantage plans, repurchased 2,431,200 shares year-to-date at an average price of $411.32 per share, totaling $1 billion. Humana has $2 billion remaining in its share repurchase program as of July 26.