Travel+Leisure Co's Dividend Analysis
Assessing the Sustainability and Prospects of Travel+Leisure Co's Dividend
Travel+Leisure Co (NYSE:TNL) recently announced a dividend of $0.50 per share, payable on March 29, 2024, with the ex-dividend date set for March 20, 2024. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's delve into Travel+Leisure Co's dividend performance and assess its sustainability.
What Does Travel+Leisure Co Do?
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Travel+Leisure Co is a membership and leisure travel company providing hospitality services and travel products. The company operates in segments such as Vacation Ownership, which is the primary revenue driver, and Travel and Membership, which includes travel exchange brands, a home exchange network, and various travel technology platforms. The majority of Travel+Leisure Co's revenue is generated within the United States.
A Glimpse at Travel+Leisure Co's Dividend History
Travel+Leisure Co has maintained a consistent dividend payment record since 2007, with dividends currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share to track historical trends.
Breaking Down Travel+Leisure Co's Dividend Yield and Growth
As of today, Travel+Leisure Co's trailing dividend yield stands at 3.93%, with a forward dividend yield of 4.36%, indicating an expected increase in dividend payments over the next 12 months. Over the past three years, the annual dividend growth rate was 4.00%. However, when extended to a five-year horizon, this rate decreased to -2.40% per year. Over the past decade, the annual dividends per share growth rate stands at 1.10%.
Based on Travel+Leisure Co's dividend yield and five-year growth rate, the 5-year yield on cost for Travel+Leisure Co stock is approximately 3.48%.
The Sustainability Question: Payout Ratio and Profitability
Evaluating the sustainability of Travel+Leisure Co's dividend involves examining the dividend payout ratio, which stands at 0.32 as of December 31, 2023. This ratio indicates that the company retains a significant portion of its earnings for future growth and potential downturns. Additionally, Travel+Leisure Co's profitability rank is 8 out of 10, reflecting strong earnings potential relative to its peers. The company has reported net profit in 9 out of the past 10 years.
Growth Metrics: The Future Outlook
Travel+Leisure Co's robust growth rank of 8 out of 10 indicates a favorable growth trajectory compared to its competitors. The company's revenue per share and 3-year revenue growth rate show a strong revenue model, with an average annual increase of approximately 25.80%, outperforming roughly 84.51% of global competitors.
Concluding Thoughts on Travel+Leisure Co's Dividend Profile
In conclusion, Travel+Leisure Co's consistent dividend payments, reasonable growth rate, prudent payout ratio, strong profitability, and promising growth metrics paint a picture of a company committed to providing shareholder value through dividends. These factors suggest that Travel+Leisure Co's dividends have a solid foundation and may continue to be a reliable source of income for investors. As the travel industry adapts to post-pandemic trends and consumer preferences, Travel+Leisure Co appears poised to capitalize on these changes, potentially leading to continued dividend growth and sustainability.
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This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
