Prediction: This Dividend Stock Will Beat the Market Over the Next 5 Years

Core Viewpoint - Despite being out of favor on Wall Street with a year-to-date decline of nearly 7%, Marriott International is actively repurchasing a significant amount of stock, presenting potential investment opportunities amidst the AI stock momentum [1] Financial Performance - In the second quarter, Marriott reported a 6% year-over-year increase in adjusted revenue, exceeding $1.8 billion, alongside a similar rise in adjusted earnings per share [4] - Revenue per available room (RevPAR) increased by 1.5% globally in Q2, indicating the company's pricing power even in a challenging macroeconomic environment [9] Growth Drivers - Marriott's net rooms growth is projected to approach 5% for the full year, showcasing the company's expansion strategy [5] - The loyalty program, Marriott Bonvoy, has grown to 248 million members, an 18% increase year-over-year, with 69% of rooms booked globally in Q2 coming from these members [6] - Co-branded credit card fees have risen approximately 10% year-over-year, reflecting strong global card spending [7] - Strategic partnerships with companies like Uber and Starbucks are enhancing customer engagement and loyalty [8] Capital Return Program - Marriott plans to return about $4 billion, approximately 6% of its current market capitalization, to shareholders through dividends and share repurchases during 2025 [12] - The company has a history of steadily growing its dividend, making it an attractive option for dividend-seeking investors [10][13] Investment Outlook - With diversified growth drivers, a dividend yield exceeding 1%, and a reasonable valuation, Marriott is positioned as a solid dividend stock for long-term investment [13]