TRAVEL + LEISURE CO (NYSE:TNL) – A Dividend Stock Worth Considering

TRAVEL + LEISURE CO (NYSE:TNL) was identified as a strong dividend candidate by our screening process. The company stands out for its attractive yield, sustainable payout ratio, and solid financial health—key factors for income-focused investors. Below, we examine why TNL could be a worthwhile addition to a dividend portfolio.

Key Dividend Strengths

• High Dividend Yield: TNL offers a yield of 4.42%, well above both the industry average (3.55%) and the S&P 500 average (2.36%).
• Sustainable Payout Ratio: The company pays out 34.69% of its earnings as dividends, indicating room for continued payouts without straining finances.
• Reliable Track Record: TNL has paid dividends for at least 10 years, demonstrating consistency even through market fluctuations.
• Growing Earnings Support Dividends: While dividend growth has been modest (2.47% annually), earnings are expected to grow by 14.80% in the coming years, reinforcing sustainability.

Profitability & Financial Health

• Decent Profitability: With a Profitability Rating of 5/10, TNL maintains healthy margins, including an Operating Margin of 19.55%, outperforming 77.78% of industry peers.
• Strong Liquidity: The company’s Current Ratio of 3.88 and Quick Ratio of 2.85 suggest ample ability to meet short-term obligations.
• Reasonable Valuation: Trading at a P/E ratio of 8.63, TNL appears undervalued compared to both its industry and the broader market.

For a deeper dive into TNL’s financials, review the full fundamental report here.

Our Best Dividend Stocks screener lists more high-quality dividend stocks and is updated regularly.

Disclaimer

This is not investing advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.