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

TRAVEL + LEISURE CO (NYSE:TNL) was identified by our Best Dividend Stocks screen as a company with a strong dividend profile, solid profitability, and stable financial health. For income-focused investors, TNL presents an appealing mix of yield, sustainability, and reasonable valuation.

Dividend Strength

• Attractive Yield: TNL offers a dividend yield of 3.96%, which is above both the industry average (3.64%) and the S&P 500 average (2.34%).
• Reliable Track Record: The company has paid dividends for at least 10 years, demonstrating commitment to returning capital to shareholders.
• Sustainable Payout: Only 34.69% of earnings are allocated to dividends, indicating room for continued payouts even if earnings fluctuate.
• Modest Growth: While dividend growth has been modest at 2.47%, the payout remains well-supported by earnings.

Profitability & Financial Health

• Solid Margins: TNL maintains a Profit Margin of 10.76% and an Operating Margin of 19.55%, outperforming most peers in the Hotels, Restaurants & Leisure industry.
• Healthy Liquidity: The company’s Current Ratio of 3.88 and Quick Ratio of 2.85 suggest strong short-term financial stability.
• Reasonable Valuation: With a P/E ratio of 9.60, TNL trades at a discount compared to both its industry and the broader market.

Growth Outlook

• Earnings Growth Expected: Analysts project 14.22% annual EPS growth over the coming years, which could support further dividend increases.
• Revenue Recovery: After a period of declining revenue, TNL is expected to return to growth, with 3.64% annual revenue expansion forecasted.

For investors seeking a balance of income and stability, TNL stands out as a well-rounded option.

Our Best Dividend Stocks screener provides more high-quality dividend ideas.
For a deeper dive, review the full fundamental report on TNL.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should conduct your own research before making investment decisions.