Wyndham Hotels & Resorts Inc's Dividend Analysis
Insight into Wyndham Hotels & Resorts Inc's Upcoming Dividend Payment
Wyndham Hotels & Resorts Inc (NYSE:WH) recently announced a dividend of $0.35 per share, payable on 2023-12-27, with the ex-dividend date set for 2023-12-12. 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 Wyndham Hotels & Resorts Inc's dividend performance and assess its sustainability.
What Does Wyndham Hotels & Resorts Inc Do?
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Wyndham Hotels & Resorts operates a vast network of accommodations, with 843,000 rooms across more than 20 brands that cater mainly to the economy and midscale segments. Its largest brands include Super 8, Days Inn, and Ramada, which together represent a significant portion of the company's rooms. Wyndham has also been expanding into extended stay and lifestyle brands, which offer travelers immersive local experiences. The United States is a major market for Wyndham, accounting for about 60% of its total rooms. The company's strategic acquisition of La Quinta in 2018 significantly boosted its room offerings, adding approximately 90,000 rooms to its portfolio.
A Glimpse at Wyndham Hotels & Resorts Inc's Dividend History
Wyndham Hotels & Resorts Inc has maintained a consistent dividend payment record since 2018, with dividends being distributed quarterly. Tracking historical trends is straightforward with the chart showing the annual Dividends Per Share.
Breaking Down Wyndham Hotels & Resorts Inc's Dividend Yield and Growth
Wyndham Hotels & Resorts Inc currently boasts a trailing dividend yield of 1.75% and a forward dividend yield of 1.79%, signaling expected dividend growth over the next year. The company's annual dividend growth rate over the past three years was 3.30%. Consequently, the 5-year yield on cost for Wyndham Hotels & Resorts Inc stock is approximately 1.75% as of today.
The Sustainability Question: Payout Ratio and Profitability
Assessing the sustainability of dividends involves examining the dividend payout ratio, which indicates the portion of earnings distributed as dividends. Wyndham Hotels & Resorts Inc's dividend payout ratio is currently 0.40, suggesting a balanced approach to dividend distribution and earnings retention. The company's profitability rank is 7 out of 10, reflecting good profitability prospects. It has reported net profit in 7 of the past 10 years, further underlining its financial stability.
Growth Metrics: The Future Outlook
Wyndham Hotels & Resorts Inc's growth rank of 7 out of 10 indicates a positive growth trajectory relative to competitors. However, the company's revenue per share and 3-year revenue growth rate suggest a performance that underperforms approximately 67.23% of global competitors. The company's 3-year EPS growth rate and 5-year EBITDA growth rate also show underperformance against a significant number of global competitors. These growth metrics are crucial for evaluating the long-term sustainability of dividend payments.
Next Steps
Considering Wyndham Hotels & Resorts Inc's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics, value investors may find the company an interesting case for a balanced income-generating portfolio. While the dividend yields and growth rates are modest, the payout ratio and profitability rank suggest a stable dividend policy. However, the growth metrics indicate areas where the company may need to improve to ensure the longevity of its dividend payments. Investors should weigh these factors carefully when considering Wyndham Hotels & Resorts Inc as a potential investment for dividend income.
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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.
