Marriott’s dividend policy: is it worth investing for?

Marriott International (MAR), a leading global hospitality company, has a long-standing dividend payment history. As investors seek income-generating investments, understanding Marriott’s dividend policy is crucial. This blog post delves into the question of whether Marriott stock pays dividends and provides insights into the company’s dividend performance.

Dividend History and Payment Schedule

Yes, Marriott stock pays dividends. The company has a consistent track record of paying dividends to its shareholders. Marriott typically declares and pays dividends on a quarterly basis, with the payment date falling around the 15th of each quarter.

Dividend Yield and Payout Ratio

The dividend yield is the annual dividend per share divided by the current stock price. Marriott’s dividend yield has fluctuated over the years, but it has generally been in the range of 1% to 3%.

The dividend payout ratio is the percentage of earnings that a company distributes as dividends. Marriott’s dividend payout ratio has also varied, but it has typically been around 30% to 50%.

Dividend Growth and Sustainability

Marriott has a history of increasing its dividends over time. In recent years, the company has increased its dividend by an average of 5% to 10% annually. This growth is supported by Marriott’s strong financial performance and its commitment to returning cash to shareholders.

The sustainability of Marriott’s dividends depends on several factors, including the company’s earnings, cash flow, and capital requirements. Marriott has a solid track record of generating strong earnings and cash flow, which provides a foundation for continued dividend payments.

Factors Affecting Dividend Policy

Marriott’s dividend policy is influenced by a number of factors, including:

• Earnings and Cash Flow: Marriott’s ability to pay dividends is primarily determined by its earnings and cash flow.
• Capital Expenditure: The company’s capital expenditure plans can impact its dividend policy.
• Debt and Credit Ratings: Marriott’s debt levels and credit ratings can also influence its dividend decisions.
• Shareholder Returns: The company considers the expectations of its shareholders when setting its dividend policy.

Impact of COVID-19 on Dividends

The COVID-19 pandemic had a significant impact on Marriott’s business and its dividend policy. In 2020, the company suspended its dividend due to the uncertainty surrounding the pandemic. However, in 2021, Marriott reinstated its dividend at a reduced rate.

The Bottom Line: Marriott’s Commitment to Dividends

Marriott International has a commitment to paying dividends to its shareholders. The company’s consistent dividend payment history, dividend growth, and strong financial performance demonstrate its commitment to returning cash to investors. While dividends are not guaranteed, Marriott’s track record and its commitment to shareholder returns make it a compelling option for income-seeking investors.

Frequently Asked Questions

Q: When does Marriott pay dividends?
A: Marriott typically pays dividends on a quarterly basis, with the payment date falling around the 15th of each quarter.

Q: What is Marriott’s dividend yield?
A: Marriott’s dividend yield has fluctuated over the years, but it has generally been in the range of 1% to 3%.

Q: What is Marriott’s dividend payout ratio?
A: Marriott’s dividend payout ratio has varied, but it has typically been around 30% to 50%.

Q: Has Marriott ever cut its dividend?
A: Yes, Marriott suspended its dividend in 2020 due to the COVID-19 pandemic. However, the company reinstated its dividend at a reduced rate in 2021.

Q: Is Marriott’s dividend sustainable?
A: Marriott’s dividend sustainability depends on several factors, including its earnings, cash flow, and capital requirements. The company has a solid track record of generating strong earnings and cash flow, which provides a foundation for continued dividend payments.