Lodging giant Starwood Hotels & Resorts Worldwide, Inc. (
) on Thursday posted mixed third quarter earnings results and
raised its annual dividend payout by 150%.
The Stamford, CT-based company reported third quarter net income
of $170 million, or 87 cents per share, compared with $163 million,
or 84 cents per share, in the year-ago period. Excluding one-time
items, adjusted profit was 58 cents per share.
Revenue rose 6% from last year to $1.46 billion.
On average, Wall Street analysts expected a smaller profit of 53
cents per share, albeit on higher revenue of $1.48 billion.
Looking ahead, HOT lifted its full-year earnings outlook to a
range of $2.55 to $2.57 per share, up from a prior view of $2.49 to
In a separate announcement, the company's board of directors
approved a massive 150% increase to its annual dividend. The new
payout of $1.25 per share (up from 50 cents) will be paid on Dec.
28 with an ex-dividend date of Dec. 12. Unlike most U.S. companies
that issue quarterly dividends, HOT pays its dividend just once a
Starwood Hotels shares fell $1.31, or -2.5%, in premarket
The Bottom Line
Shares of Starwood Hotels (
) will now have a 2.34% dividend yield, based on the higher
dividend payout amount and last night's closing stock price of
$53.43. The stock has technical support in the $48-$50 price area.
If the shares can firm up, we see overhead resistance around the
$58-$60 price levels.
Starwood Hotels & Resorts Worldwide, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.3 out of 5 stars.
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