Is TRAVEL + LEISURE CO (NYSE:TNL) a Good Fit for Dividend Investing?

Consider TRAVEL + LEISURE CO (NYSE:TNL) as a top pick for dividend investors, identified by our stock screening tool. TNL shines in terms of profitability, solvency, and liquidity, all while paying a decent dividend. Let's dive deeper into the analysis.

Dividend Analysis 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 8 out of 10:

• With a Yearly Dividend Yield of 4.74%, TNL is a good candidate for dividend investing.
• TNL's Dividend Yield is rather good when compared to the industry average which is at 3.40. TNL pays more dividend than 92.65% of the companies in the same industry.
• TNL's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
• TNL has been paying a dividend for at least 10 years, so it has a reliable track record.
• 34.55% of the earnings are spent on dividend by TNL. This is a low number and sustainable payout ratio.
• TNL's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Health Assessment of TNL

A critical element of ChartMill's stock evaluation is the Health Rating, which spans from 0 to 10. This rating considers multiple health factors, including liquidity and solvency, both in absolute terms and relative to industry peers. TNL has received a 6 out of 10:

• TNL has a Altman-Z score of 2.24. This is in the better half of the industry: TNL outperforms 66.18% of its industry peers.
• TNL has a Current Ratio of 3.72. This indicates that TNL is financially healthy and has no problem in meeting its short term obligations.
• TNL has a Current ratio of 3.72. This is amongst the best in the industry. TNL outperforms 96.32% of its industry peers.
• A Quick Ratio of 2.71 indicates that TNL has no problem at all paying its short term obligations.
• With an excellent Quick ratio value of 2.71, TNL belongs to the best of the industry, outperforming 92.65% of the companies in the same industry.

Profitability Examination for TNL

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. TNL has earned a 5 out of 10:

• TNL has a better Return On Assets (6.10%) than 73.53% of its industry peers.
• The Return On Invested Capital of TNL (10.54%) is better than 75.74% of its industry peers.
• The last Return On Invested Capital (10.54%) for TNL is above the 3 year average (10.16%), which is a sign of increasing profitability.
• TNL has a Profit Margin of 10.63%. This is in the better half of the industry: TNL outperforms 75.74% of its industry peers.
• TNL has a better Operating Margin (19.48%) than 77.21% of its industry peers.

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

For an up to date full fundamental analysis you can check the fundamental report of TNL

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.