ORLANDO - Marriott Vacations Worldwide Corporation (NYSE: VAC) announced on Friday an increase in its quarterly cash dividend to $0.79 per share of common stock. This represents a 4% hike from the company's previous dividend payout. According to InvestingPro data, the company has raised its dividend for three consecutive years, maintaining payments for 11 years straight, with a current yield of 3.12%.
The company's Chief Financial Officer, Jason Marino, stated that the dividend boost is a testament to their confidence in the company's leisure-focused business strategy and its potential for growth. He emphasized that it also demonstrates their ongoing commitment to delivering shareholder value. The company's strong financial position is reflected in its healthy current ratio of 4.56, indicating robust liquidity. For deeper insights into VAC's financial health and growth prospects, InvestingPro offers comprehensive analysis in its Pro Research Report.
Stockholders on record as of December 19, 2024, will be eligible for the dividend, which is scheduled to be distributed on or about January 3, 2025.
Marriott Vacations Worldwide is recognized as a prominent global vacation company, providing a variety of services including vacation ownership, exchange, rental, resort, and property management. The company boasts approximately 120 vacation ownership resorts and serves around 700,000 owner families. Its portfolio spans some of the most well-known vacation ownership brands. Additionally, Marriott Vacations operates an exchange network and membership programs that encompass over 3,200 affiliated resorts across more than 90 countries and territories.
The company is known for its commitment to excellence in customer service, investor relations, and associate support, while maintaining strategic, long-term relationships with Marriott International (NASDAQ:MAR), Inc. and an affiliate of Hyatt Hotels (NYSE:H) Corporation for the development, sales, and marketing of vacation ownership products and services. Trading at a P/E ratio of 16.86 and showing a strong year-to-date return of 17.76%, VAC appears slightly overvalued according to InvestingPro's Fair Value analysis, which considers multiple valuation metrics and growth factors.
This dividend announcement is based on a press release statement from Marriott Vacations Worldwide Corporation.
In other recent news, Marriott Vacations Worldwide reported a robust Q3 performance, with a 5% year-over-year increase in contract sales and nearly 90% resort occupancy. The company's earnings were bolstered by strategic initiatives such as a first-time buyer financing promotion and the opening of a new resort in Waikiki, expected to increase annual contract sales by $30 million to $50 million. Despite challenges from the Maui wildfires, Marriott Vacations demonstrated resilience, with CEO John Geller projecting low single-digit maintenance fee increases for 2025.
In financial terms, Marriott Vacations reported $231 million in adjusted EBITDA for the Vacation Ownership segment and over $900 million in liquidity. However, the Exchange and Third-Party Management segment experienced a $7 million decline in adjusted EBITDA, primarily due to lower profits from Aqua-Aston after the Maui wildfires.
Stifel, an investment firm, recently reiterated its Buy rating on Marriott Vacations and increased its price target from $102.00 to $112.00. The firm also revised its earnings per share estimates for the company, projecting an increase in the 2025 and 2026 estimates.
In terms of personnel changes, the company promoted Scott Weisz to Executive Vice President, Strategic Business Operations. Looking ahead, Marriott Vacations plans to open a new Hyatt Vacation Club resort in Orlando and implement initiatives to improve operational efficiencies, potentially yielding an additional $50 million to $100 million annually by 2026. These are the recent developments in Marriott Vacations Worldwide.
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