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Marriott Vacations Rewards Investors With 4% Dividend Hike
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Marriott Vacations Worldwide Corporation (VAC - Free Report) recently announced a hike in its quarterly dividend payout. The company raised its quarterly dividend by 4%, which indicates VAC’s intention to utilize free cash to boost its shareholders’ returns.
VAC increased its quarterly dividend to 79 cents per share (or $3.16 annually) from the previous payout of 76 cents (or $3.04 annually). The hiked dividend will be paid out on (or around) Jan. 3, 2025, to its shareholders on record as of Dec. 19, 2024. Based on the closing price of $96.72 per share on Friday, 2024, the stock has a dividend yield of 3.3%.
The company's dividend increase signifies confidence in its leisure-focused business strategy and growth prospects while reinforcing VAC’s commitment to delivering value to its shareholders. This marks the company’s third consecutive year of increasing its cash dividend.
Along with boosting its shareholders’ returns, dividend hikes raise the market value of the stock. Investors always prefer a return-generating stock. A high-dividend-yielding one is much coveted. It goes without saying that stockholders are always on the lookout for companies with a track record of consistent and incremental dividend payments.
Factors Supporting Dividend Hikes
Shares of Marriott Vacations have gained 39.3% in the past three months compared with the Zacks Leisure and Recreation Services industry’s 35.3% growth. The company has been benefiting from solid contributions from the Vacation Ownership segment, driven by increased tours, higher development, resort management and rental profit.
Image Source: Zacks Investment Research
In third-quarter 2024, the company reported nearly 90% resort occupancy and year-over-year growth in contract sales. Marriott Vacations saw a rise in first-time buyer sales, alongside existing owners purchasing additional points. Tours increased 10% year over year, with Asian Pacific sales growing more than 40%. Owner VPG also increased, indicating the value placed on vacations.
The company has been strategically investing in digital technologies to enhance self-service options for owners and members. VAC has been utilizing data to tailor offers effectively, optimizing timing and targeting. The company is streamlining processes to reduce costs throughout the organization.
VAC’s Zacks Rank & Key Picks
Marriott Vacations currently carries a Zacks Rank #3 (Hold).
CCL delivered a trailing four-quarter earnings surprise of 318.1%, on average. The stock has surged 50.9% in the past year. The Zacks Consensus Estimate for CCL’s fiscal 2024 sales indicates growth of 16.7% from year-ago levels.
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) currently carries a Zacks Rank #2 (Buy). NCLH delivered a trailing four-quarter earnings surprise of 4.2%, on average. The stock has surged 50.1% in the past year.
The Zacks Consensus Estimate for NCLH’s 2024 sales and EPS indicates growth of 10.7% and 134.3%, respectively, from year-ago levels.
Royal Caribbean Cruises Ltd. (RCL - Free Report) currently carries a Zacks Rank #2. RCL delivered a trailing four-quarter earnings surprise of 16.2%, on average. The stock has surged 114.3% in the past year.
The Zacks Consensus Estimate for RCL’s 2024 sales and EPS indicates growth of 18.6% and 72.1%, respectively, from year-ago levels.
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Marriott Vacations Rewards Investors With 4% Dividend Hike
Marriott Vacations Worldwide Corporation (VAC - Free Report) recently announced a hike in its quarterly dividend payout. The company raised its quarterly dividend by 4%, which indicates VAC’s intention to utilize free cash to boost its shareholders’ returns.
VAC increased its quarterly dividend to 79 cents per share (or $3.16 annually) from the previous payout of 76 cents (or $3.04 annually). The hiked dividend will be paid out on (or around) Jan. 3, 2025, to its shareholders on record as of Dec. 19, 2024. Based on the closing price of $96.72 per share on Friday, 2024, the stock has a dividend yield of 3.3%.
The company's dividend increase signifies confidence in its leisure-focused business strategy and growth prospects while reinforcing VAC’s commitment to delivering value to its shareholders. This marks the company’s third consecutive year of increasing its cash dividend.
Along with boosting its shareholders’ returns, dividend hikes raise the market value of the stock. Investors always prefer a return-generating stock. A high-dividend-yielding one is much coveted. It goes without saying that stockholders are always on the lookout for companies with a track record of consistent and incremental dividend payments.
Factors Supporting Dividend Hikes
Shares of Marriott Vacations have gained 39.3% in the past three months compared with the Zacks Leisure and Recreation Services industry’s 35.3% growth. The company has been benefiting from solid contributions from the Vacation Ownership segment, driven by increased tours, higher development, resort management and rental profit.
Image Source: Zacks Investment Research
In third-quarter 2024, the company reported nearly 90% resort occupancy and year-over-year growth in contract sales. Marriott Vacations saw a rise in first-time buyer sales, alongside existing owners purchasing additional points. Tours increased 10% year over year, with Asian Pacific sales growing more than 40%. Owner VPG also increased, indicating the value placed on vacations.
The company has been strategically investing in digital technologies to enhance self-service options for owners and members. VAC has been utilizing data to tailor offers effectively, optimizing timing and targeting. The company is streamlining processes to reduce costs throughout the organization.
VAC’s Zacks Rank & Key Picks
Marriott Vacations currently carries a Zacks Rank #3 (Hold).
Here are some better-ranked stocks from the Zacks Consumer Discretionary sector.
Carnival Corporation & plc (CCL - Free Report) currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
CCL delivered a trailing four-quarter earnings surprise of 318.1%, on average. The stock has surged 50.9% in the past year. The Zacks Consensus Estimate for CCL’s fiscal 2024 sales indicates growth of 16.7% from year-ago levels.
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) currently carries a Zacks Rank #2 (Buy). NCLH delivered a trailing four-quarter earnings surprise of 4.2%, on average. The stock has surged 50.1% in the past year.
The Zacks Consensus Estimate for NCLH’s 2024 sales and EPS indicates growth of 10.7% and 134.3%, respectively, from year-ago levels.
Royal Caribbean Cruises Ltd. (RCL - Free Report) currently carries a Zacks Rank #2. RCL delivered a trailing four-quarter earnings surprise of 16.2%, on average. The stock has surged 114.3% in the past year.
The Zacks Consensus Estimate for RCL’s 2024 sales and EPS indicates growth of 18.6% and 72.1%, respectively, from year-ago levels.