Marriott Boosts Investors' Sentiments With a 6% Dividend Hike

Core Viewpoint - Marriott International, Inc. has increased its quarterly dividend, reflecting strong cash flow and earnings growth, while maintaining an incremental capital allocation strategy to enhance shareholder value [1][3]. Financial Performance - The board approved a quarterly dividend payout of 67 cents per share, a 6.3% increase from the previous 63 cents, translating to an annual payout of $2.68 per share [2]. - As of March 31, 2025, Marriott's cash and cash equivalents rose to $546 million from $448 million at the end of 2024, while short-term obligations decreased to $959 million from $1.31 billion [4]. - Year-to-date through April 29, 2025, the company returned $1.2 billion to shareholders through dividends and share repurchases, including the repurchase of 3.9 million shares worth $1 billion [5]. Strategic Initiatives - Marriott's dividend hike is supported by strong cash flow generation in Q1 2025, driven by increased travel demand and a fee-driven business model [3]. - The company expects to return approximately $4 billion to shareholders in 2025, after capital expenditures of $355 million for the citizenM acquisition [5]. - Moving forward, Marriott's strategic initiatives, diversified global portfolio, and loyalty program are anticipated to support growth amid macroeconomic uncertainties [8]. Stock Performance - Marriott's stock has gained 15.4% in the past month, outperforming the Zacks Hotels and Motels industry's growth of 13.6% [6].