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 combines an attractive yield with solid financial health and profitability, making it a potential fit for income-focused investors. Below, we examine why TNL stands out.

Key Dividend Strengths

• High Dividend Yield: TNL offers a yield of 4.61%, well above the S&P 500 average of 2.39% and outperforming 90.98% of its industry peers.
• 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, with no cuts in the past three years, suggesting stability in its income distribution.

Profitability & Financial Health

• Decent Margins: TNL maintains a profit margin of 10.76%, better than 77.44% of competitors, and an operating margin of 19.55%.
• Strong Liquidity: With a current ratio of 3.88 and quick ratio of 2.85, the company is well-positioned to meet short-term obligations.
• Reasonable Valuation: Trading at a P/E of 8.44, TNL is cheaper than 96.24% of its industry peers, offering value alongside income potential.

Growth Outlook

While past revenue growth has been modest, analysts expect EPS to grow by 14.80% annually in the coming years, which could support further dividend increases.

For a deeper look, review the full fundamental report on TNL.

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Disclaimer

This is not investment advice. Always conduct your own research before making financial decisions.