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DiamondRock Hospitality Company (NYSE:DRH): A Fundamentally Attractive Investment

Attractive stocks have exceptional fundamentals. In the case of DiamondRock Hospitality Company (NYSE:DRH), there’s is a highly-regarded dividend-paying company that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on DiamondRock Hospitality here.

Adequate balance sheet average dividend payer

DRH is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. DRH appears to have made good use of debt, producing operating cash levels of 0.2x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

NYSE:DRH Historical Debt October 20th 18

DRH is considered one of the top dividend payers in the market, and it has also been able to maintain it at a level in which net income is able to cover dividend payments.

NYSE:DRH Historical Dividend Yield October 20th 18

Next Steps:

For DiamondRock Hospitality, I’ve compiled three key factors you should look at:

  1. Future Outlook: What are well-informed industry analysts predicting for DRH’s future growth? Take a look at our free research report of analyst consensus for DRH’s outlook.
  2. Historical Performance: What has DRH’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of DRH? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.