Our analysis is based on comparing Marriott International, Inc. with the following peers – Choice Hotels International, Inc., InterContinental Hotels Group PLC Sponsored ADR, Hilton Worldwide Holdings Inc, Wyndham Worldwide Corporation, Extended Stay America Inc, Vail Resorts, Inc. and Hyatt Hotels Corporation Class A (CHH-US, IHG-US, HLT-US, WYN-US, STAY-US, MTN-US and H-US).
Marriott International, Inc.’s dividend yield is 1.50 percent and its dividend payout is 43.17 percent. This compares to a peer average dividend yield of 1.75 percent and a payout level of 74.31 percent. This relatively lagging dividend performance could spur some dividend action going forward – except the company’s current dividend quality score of 58 out of a possible score of 100 is only about average.
Dividend Quality Overview
- Over the last twelve months (prior to March 31, 2017), MAR-US paid a medium quality dividend, which represents a yield of 1.18% at the current price.
- Dividend quality trend has not been consistent over the last five years. Dividends were paid during each of these years — of these 4 were high quality and 1 was medium quality.
- The ending cash balance, with a dividend coverage of 1.74x, provides a moderate cushion in case of a significant reduction of cash flows in the future.
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Over the last twelve months (prior to March 31, 2017), MAR-US paid a medium quality dividend.
The source of the company’s cash to support the dividend paid over the last twelve months is operating cash flow (coverage of 4.18x), investing cash flow (coverage of -5.08x), issuance cash flow (coverage of 3.41x) and twelve-month prior cash (coverage of 0.23x), for a total dividend coverage of 2.74x.
MAR-US‘s issuance cash flow includes outflows from net share buybacks (coverage of -2.05x). Thus, the total coverage including share buybacks is 4.79x, which reflects our assumption that the cash paid for share buybacks is discretionary and could instead be used to pay dividends.
These coverage ratio factors imply that the firm’s net cash inflow from issuance was required (in addition to operating and investment cash) to pay the dividend, which suggests a medium dividend quality.
|Dividend Yield (%)||1.68||1.33||1.02||1.47||1.17||1.5|
|Dividend Payout (%)||28.49||32||30.31||30.16||43.56||43.17|
A complete list of metrics and analysis is available on the company page.
Marriott International, Inc. is a diversified global lodging company, which engages in the operation and franchise of hotels, corporate housing properties, and timeshare properties. It operates through the following business segments: North American Full-Service; North American Limited-Service; and International. The North American Full-Service segment includes The Ritz-Carlton, EDITION, JW Marriott, Autograph Collection Hotels, Renaissance Hotels, Marriott Hotels, and Gaylord Hotels. The North American Limited-Service segment comprises of AC Hotels by Marriott, Courtyard, Residence Inn, SpringHill Suites, Fairfield Inn & Suites, and TownePlace Suites properties. The International segment involves The Ritz-Carlton, Bulgari Hotels & Resorts, EDITION, JW Marriott, Autograph Collection Hotels, Renaissance Hotels, Marriott Hotels, Marriott Executive Apartments, AC Hotels by Marriott, Courtyard, Residence Inn, SpringHill Suites, Fairfield Inn & Suites, TownePlace Suites, Protea Hotels, and Moxy Hotels. The company was founded in 1997 and is headquartered in Bethesda, MD.
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