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Choice Hotels (CHH) Rewards Investors With 21% Dividend Hike
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Choice Hotels International, Inc. (CHH - Free Report) announced an increase in the dividend payout, emphasizing its sustainable growth and ability to deliver long-term shareholder value.
The board of directors approved a 21% hike in its quarterly cash dividend to 28.75 cents per share ($1.15 annually) from 23.75 cents (95 cents annually). The new dividend will be paid out on Apr 18, 2023 to its shareholders of record as of Apr 3, 2023. The dividend yield, based on CHH’s Mar 1 closing price, is approximately 0.96%.
We appreciate Choice Hotels’ consistent efforts to enhance shareholder returns, despite the high inflation affecting most industries. These initiatives reflect the company’s business strength and the sustainability of its cash flows. In 2022, the company returned more than $487 million to its stockholders in the form of share repurchases and dividends.
The share price of CHH increased 1.2% during the trading session on Mar 1 and 0.6% in the after-hours trading session.
Factors Driving Growth
Choice Hotels majorly focuses on strengthening all its franchisees to ensure consistent long-term growth prospects. To support its franchise business, the company initiated the rollout of a new mobile-enabled revenue management app. The tool allows franchisees to effectively manage their channel rates and inventory by adapting to local market trends. It enables repricing and competitive rate shopping to execute the right pricing strategy. With the higher acceptance of rate recommendations coupled with solid bookings, the company anticipates this enhanced capability to drive top-line growth in the upcoming periods.
The company emphasizes on the improvement of unit economics with the rollout of a new digital registration capability. The cost-effective cloud-based solution offers simplification in the hotel registration process (for front desk staff), savings on labor, faster check-ins as well as improvement in overall guest experience.
The company has been able to reward its shareholders over the years because of its strong balance sheet position. At the end of fourth-quarter 2022, the company had cash and cash equivalents of $41.6 million.
Image Source: Zacks Investment Research
Shares of CHH have risen 5.9% in the past six months compared with the Zacks Hotels and Motels industry’s growth of 15.9%.
Ralph Lauren Corporation (RL - Free Report) currently sports a Zacks Rank #1. RL has a trailing four-quarter earnings surprise of 23.6%, on average. Its shares have rallied 29.8% in the past six months.
The Zacks Consensus Estimate for RL’s fiscal 2024 sales and EPS suggests growth of 5.5% and 14.3%, respectively, from the year-ago levels.
InterContinental Hotels Group PLC (IHG - Free Report) currently sports a Zacks Rank #1. Shares of IHG have gained 26.3% in the past six months. The long-term earnings growth rate of the company is 13.6%.
The Zacks Consensus Estimate for IHG’s 2023 sales and EPS suggests growth of 9.8% and 18.4%, respectively, from the year-ago period’s reported levels.
Sony Group Corporation (SONY - Free Report) currently has a Zacks Rank #1. SONY has a trailing four-quarter earnings surprise of 22.2%, on average. Shares of the company have gained 8.3% in the past six months.
The Zacks Consensus Estimate for SONY’s fiscal 2024 sales and EPS suggests growth of 10.3% and 10%, respectively.
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Choice Hotels (CHH) Rewards Investors With 21% Dividend Hike
Choice Hotels International, Inc. (CHH - Free Report) announced an increase in the dividend payout, emphasizing its sustainable growth and ability to deliver long-term shareholder value.
The board of directors approved a 21% hike in its quarterly cash dividend to 28.75 cents per share ($1.15 annually) from 23.75 cents (95 cents annually). The new dividend will be paid out on Apr 18, 2023 to its shareholders of record as of Apr 3, 2023. The dividend yield, based on CHH’s Mar 1 closing price, is approximately 0.96%.
We appreciate Choice Hotels’ consistent efforts to enhance shareholder returns, despite the high inflation affecting most industries. These initiatives reflect the company’s business strength and the sustainability of its cash flows. In 2022, the company returned more than $487 million to its stockholders in the form of share repurchases and dividends.
The share price of CHH increased 1.2% during the trading session on Mar 1 and 0.6% in the after-hours trading session.
Factors Driving Growth
Choice Hotels majorly focuses on strengthening all its franchisees to ensure consistent long-term growth prospects. To support its franchise business, the company initiated the rollout of a new mobile-enabled revenue management app. The tool allows franchisees to effectively manage their channel rates and inventory by adapting to local market trends. It enables repricing and competitive rate shopping to execute the right pricing strategy. With the higher acceptance of rate recommendations coupled with solid bookings, the company anticipates this enhanced capability to drive top-line growth in the upcoming periods.
The company emphasizes on the improvement of unit economics with the rollout of a new digital registration capability. The cost-effective cloud-based solution offers simplification in the hotel registration process (for front desk staff), savings on labor, faster check-ins as well as improvement in overall guest experience.
The company has been able to reward its shareholders over the years because of its strong balance sheet position. At the end of fourth-quarter 2022, the company had cash and cash equivalents of $41.6 million.
Image Source: Zacks Investment Research
Shares of CHH have risen 5.9% in the past six months compared with the Zacks Hotels and Motels industry’s growth of 15.9%.
Zacks Rank & Key Picks
Choice Hotels currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the Zacks Consumer Discretionary sector are:
Ralph Lauren Corporation (RL - Free Report) currently sports a Zacks Rank #1. RL has a trailing four-quarter earnings surprise of 23.6%, on average. Its shares have rallied 29.8% in the past six months.
The Zacks Consensus Estimate for RL’s fiscal 2024 sales and EPS suggests growth of 5.5% and 14.3%, respectively, from the year-ago levels.
InterContinental Hotels Group PLC (IHG - Free Report) currently sports a Zacks Rank #1. Shares of IHG have gained 26.3% in the past six months. The long-term earnings growth rate of the company is 13.6%.
The Zacks Consensus Estimate for IHG’s 2023 sales and EPS suggests growth of 9.8% and 18.4%, respectively, from the year-ago period’s reported levels.
Sony Group Corporation (SONY - Free Report) currently has a Zacks Rank #1. SONY has a trailing four-quarter earnings surprise of 22.2%, on average. Shares of the company have gained 8.3% in the past six months.
The Zacks Consensus Estimate for SONY’s fiscal 2024 sales and EPS suggests growth of 10.3% and 10%, respectively.