Choice Hotels Hikes Dividend To Boost Shareholders' Value
Zacks Investment Research | Dec 15, 2019 09:34PM ET
Choice Hotels International, Inc. (NYSE:CHH) recently announced a hike in its quarterly dividend payout. The company raised its quarterly dividend by 4.7%, which indicates its intention to utilize free cash for boosting shareholders’ returns.
The company raised quarterly dividend to 22.5 cents per share (or 90 cents annually) from the previous payout of 21.5 cents (or 86 cents annually). The hiked dividend will be paid out on Jan 16, 2020 to shareholders on record as of Jan 2, 2020. Notably, the dividend yield, based on the new payout and the last closing market price, is approximately 0.9%.
This hike reflects on the lodging franchisors’ solid progress on its flagship Comfort brand, renovated hotels that are capturing more business travel on high developer demand and rapid growth in upscale Cambria brand.
Importantly, Choice Hotels maintains a capital structure with high financial returns. The company has a historical record of returning value to its shareholders through repurchases and dividends. In the first nine months of 2019, Choice Hotels paid cash dividends of $36 million.
Price Performance
Shares of Choice Hotels have surged 41.6% year to date compared with the Zacks Zacks Investment Research
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