Marriott Vacations Worldwide Corp's Dividend Analysis
Assessing the Sustainability and Growth of Marriott Vacations Worldwide Corp's Dividends
Marriott Vacations Worldwide Corp (NYSE:VAC) recently announced a dividend of $0.76 per share, payable on 2024-01-04, with the ex-dividend date set for 2023-12-20. 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 look into Marriott Vacations Worldwide Corp's dividend performance and assess its sustainability.
What Does Marriott Vacations Worldwide Corp Do?
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Marriott Vacations Worldwide Corp operates in the United States leisure industry, owning and managing a portfolio of resorts and accommodations. Renowned brands such as Marriott Vacation Club, Grand Residencies, and The Ritz-Carlton Destination Club fall under its umbrella, with properties spanning the United States, Europe, and the Asia Pacific. The company's primary revenue streams include the sale of vacation ownership products and providing financing to customers. Marriott Vacations Worldwide Corp is structured into two reportable segments: Vacation Ownership and Exchange & Third-Party Management, with the former being the primary revenue driver.
A Glimpse at Marriott Vacations Worldwide Corp's Dividend History
Since 2014, Marriott Vacations Worldwide Corp has upheld a steady track record of dividend payments, distributing dividends quarterly. A historical analysis of Dividends Per Share can provide insight into the company's dividend trends over the years.
Breaking Down Marriott Vacations Worldwide Corp's Dividend Yield and Growth
Marriott Vacations Worldwide Corp currently boasts a 12-month trailing dividend yield of 3.37% and a forward dividend yield of 3.56%, indicating an anticipated increase in dividend payments over the next year. The company's annual dividend growth rate over the past three years stands at 10.90%, with a slight decrease to 1.00% when extended over five years. Consequently, the 5-year yield on cost for Marriott Vacations Worldwide Corp stock is approximately 3.54% as of today.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio is crucial for evaluating the sustainability of Marriott Vacations Worldwide Corp's dividends. With a payout ratio of 0.39 as of 2023-09-30, the company retains a substantial portion of its earnings, which supports future growth and offers a buffer against downturns. Marriott Vacations Worldwide Corp's profitability rank is 7 out of 10, indicating good profitability prospects. The company has consistently reported net profits in 9 out of the past 10 years.
Growth Metrics: The Future Outlook
Marriott Vacations Worldwide Corp's growth rank of 7 suggests a positive growth trajectory. The company's revenue per share and 3-year revenue growth rate reflect a robust revenue model, with an average annual increase of 2.50%. This growth rate surpasses that of approximately 58.25% of global competitors. Additionally, Marriott Vacations Worldwide Corp's 3-year EPS growth rate of 20.00% per year on average outperforms approximately 59.92% of global competitors, underscoring its earnings growth potential.
Concluding Thoughts on Marriott Vacations Worldwide Corp's Dividends
In conclusion, Marriott Vacations Worldwide Corp's consistent dividend payments, growth rate, reasonable payout ratio, and strong profitability and growth metrics paint a picture of a company with a sustainable dividend policy. These factors, combined with the company's robust financial health and market position, make it a potential candidate for value investors seeking stable income streams. With the upcoming dividend payment and the promising outlook, Marriott Vacations Worldwide Corp remains an interesting option for those looking to enhance their investment portfolios with dividend-paying stocks. For further investment opportunities, GuruFocus Premium users can explore the High Dividend Yield Screener.
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.
