New Dividend Boost Uplifts Investors
Marriott International, Inc. MAR recently sent waves of joy through investors with a substantial 21.2% surge in its quarterly cash dividend payouts. The board of directors at this global hospitality giant sanctioned a generous quarterly dividend of 63 cents per share ($2.52 annually), a noticeable uptick from the previous 52 cents per share ($2.08 annually). This financial offering is set for distribution on Jun 28, 2024, to shareholders on record as of May 24. At the closure of $240.46 per share on May 10, the stock’s dividend yield stands at 1% with a 0.3% payout ratio.
Driving Factors Behind Dividend Decision
Marriott’s decision to enhance its quarterly dividend stems from a fortified financial position and strategic capital deployment actions. The company’s unwavering commitment to effective capital allocation methodologies plays a pivotal role in nurturing its growth trajectory. Marriott’s strategy revolves around identifying growth avenues that bolster shareholder value, backing them with investments. By striking a balance between modestly escalating cash dividends and share buybacks, the company ensures its investors share in the prosperity.
Capitalizing on Success and Global Expansion
In the first quarter of 2024, Marriott reported adjusted earnings per share (EPS) of $2.13, marking a 1.9% increase from the equivalent figure in the previous year. The company’s capital allocation philosophy, emphasizing an investment-grade rating and seizing growth opportunities, has contributed significantly to this positive development. Additionally, Marriott’s growth trajectory in international markets, expansion endeavors, robust loyalty programs, and asset-light business model are key contributors to its financial prosperity. Despite challenges such as high costs, the company’s focus on leveraging revenue growth and channeling excess capital into lucrative prospects has paid off.
Predicted Outlook and Growth Prospects
For 2024, Marriott has raised its adjusted EPS range projection to $9.31-$9.65 from the previous $9.18-$9.52, anticipating higher incentive management fees from its global operations.
Image Source: Zacks Investment Research
Over the past year, shares of this Zacks Rank #3 (Hold) company have surged by an impressive 36.4%, outstripping the Hotels and Motels industry average growth rate of 29.7%.
Highlighted Stock Selections
In the realm of Consumer Discretionary stocks, a few noteworthy options stand out:
Strategic Education, Inc. STRA presently enjoys a Zacks Rank #1 (Strong Buy). STRA boasts a trailing four-quarter earnings surprise average of 36.2% and a remarkable 50.2% gain over the past year.
Netflix, Inc. NFLX holds a Zacks Rank of 1, delivering a trailing four-quarter earnings surprise average of 9.3% and an impressive 81.5% surge in the past year.
Royal Caribbean Cruises Ltd. RCL holds a Zacks Rank of 1 and showcases a trailing four-quarter earnings surprise average of 18.3%, coupled with a striking 86.6% rise over the past year.
These sterling performances underscore the potential for significant returns in these selected equities, contributing to a thriving investment landscape.
