Choice Hotels International, Inc. CHH recently announced an increase in its quarterly dividend. The company increased the quarterly dividend by 6%, reflecting its intention to use available cash to increase shareholder returns.
The company raised the quarterly dividend to 23.75 cents per share (or 95 cents per year) from the previous payment of 22.5 cents (or 90 cents per year). The increased dividend will be paid on January 18, 2022 to shareholders of record on January 4, 2022. Based on the closing price of $ 146.64 per share on December 6, 2021, the share has a dividend yield of 0.6%.
Dividend increases not only increase shareholder returns, but also increase the market value of the stock. As a result, companies often attract new investors and retain old ones through this strategy. Since the start of the year (through October 2021), the company has paid out more than $ 35 million to its shareholders in the form of cash dividends and common share buybacks.
What drives the dividend policy?
This increase reflects solid progress by accommodation franchisors on the flagship Comfort brand, refurbished hotels that are capturing more business travel thanks to strong developer demand and the rapid growth of the upscale Cambria brand.
To support its franchise business at a critical time in the takeover process, the company rolled out a new mobile-friendly revenue management application. The tool allows franchisees to efficiently manage their channel prices and inventory by adapting to local market trends. This includes reviewing prices and purchasing competitive rates to execute the right pricing strategy. With greater acceptance of rate recommendations coupled with strong bookings for the winter holidays, the company anticipates this improved ability to generate revenue in future periods.
Apart from this, the company is emphasizing on improving the economy of the unit with the deployment of new digital recording capability. The cost-effective, cloud-based solution offers a simplification of the hotel check-in process (for front desk staff), labor savings, faster check-ins and improves the overall guest experience.
We believe that the initiatives are likely to strengthen the business of the company and promote the sustainability of its cash flows in the periods to come.
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So far this year, shares of Choice Hotels have jumped 37.4% from the 8% growth in Zacks’ hotel and motel industry.
Zacks rank and actions to consider
Currently, Choice Hotels holds a Zacks Rank # 3 (Hold). You can see The full list of Zacks # 1 (strong buy) stocks today here.
Some top-ranked stocks in the consumer discretionary sector include Hilton Grand Vacations Inc. heavyweight, Bluegreen Vacations Holding Corporation BVH and Camping World Holdings, Inc. CWH.
Hilton Grand Vacations has a Zacks # 1 (strong buy) rating. The company has a surprise earnings for the last four quarters of 411.1% on average. The company’s shares have risen 59.6% so far this year.
Zacks’ consensus estimate for current year sales and earnings per share (EPS) for Hilton Grand Vacations suggests growth of 222.1% and 170.8%, respectively, from levels in l ‘last year.
Bluegreen Vacations has a Zacks # 1 ranking. The company has a surprise earnings for the last four quarters of 695%, on average. The company’s shares have jumped 127.4% so far this year.
Zacks ‘consensus estimate for Bluegreen Vacations’ sales and EPS for the current year shows an increase of 27.5% and 199.3%, respectively, from the prior year levels.
Camping World carries a Zacks Rank # 2 (Buy). The company benefits from the launch of a new peer-to-peer VR rental market and a mobile services market. He has invested heavily in product development.
Camping World has a surprise profit over the last four quarters of 70.9% on average. The company’s shares have appreciated 61.1% so far this year. Zacks’ consensus estimate for CWH’s sales and EPS for the year suggests growth of 25.9% and 77.6%, respectively, from the prior year levels.
5 actions in the process of doubling
Each was selected by a Zacks expert as the # 1 favorite stock to earn + 100% or more in 2021. Previous recommendations climbed + 143.0%, + 175.9%, + 498.3% and + 673.0%.
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Choice Hotels International, Inc. (CHH): Free Inventory Analysis Report
Camping World (CWH): Free Stock Analysis Report
Hilton Grand Vacations Inc. (HGV): Free Inventory Analysis Report
Bluegreen Vacations Holding Corporation (BVH): Free Stock Analysis Report
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