Uncovering Dividend Opportunities with TRAVEL + LEISURE CO (NYSE:TNL).

TRAVEL + LEISURE CO (NYSE:TNL) was identified as a stock worth exploring by dividend investors by our stock screener. TNL scores well on profitability, solvency and liquidity. At the same time it seems to pay a decent dividend. We'll explore this a bit deeper below.

How do we evaluate the Dividend for TNL?

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. TNL earns a 7 out of 10:

• TNL's Dividend Yield is rather good when compared to the industry average which is at 3.24. TNL pays more dividend than 90.37% of the companies in the same industry.
• TNL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.34.
• TNL has paid a dividend for at least 10 years, which is a reliable track record.
• 34.55% of the earnings are spent on dividend by TNL. This is a low number and sustainable payout ratio.
• The dividend of TNL is growing, but earnings are growing more, so the dividend growth is sustainable.

Understanding TNL's Health

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For TNL, the assigned 6 for health provides valuable insights:

• TNL has a Altman-Z score of 2.26. This is in the better half of the industry: TNL outperforms 66.67% of its industry peers.
• A Current Ratio of 3.72 indicates that TNL has no problem at all paying its short term obligations.
• TNL has a better Current ratio (3.72) than 96.30% of its industry peers.
• A Quick Ratio of 2.71 indicates that TNL has no problem at all paying its short term obligations.
• TNL has a Quick ratio of 2.71. This is amongst the best in the industry. TNL outperforms 92.59% of its industry peers.

Evaluating Profitability: TNL

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of TNL, the assigned 5 is noteworthy for profitability:

• TNL's Return On Assets of 6.10% is fine compared to the rest of the industry. TNL outperforms 75.56% of its industry peers.
• TNL has a Return On Invested Capital of 10.54%. This is in the better half of the industry: TNL outperforms 75.56% of its industry peers.
• The 3 year average ROIC (10.16%) for TNL is below the current ROIC(10.54%), indicating increased profibility in the last year.
• The Profit Margin of TNL (10.63%) is better than 75.56% of its industry peers.
• With a decent Operating Margin value of 19.48%, TNL is doing good in the industry, outperforming 77.78% of the companies in the same industry.

More Best Dividend stocks can be found in our Best Dividend screener.

Our latest full fundamental report of TNL contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.