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Travel + Leisure Co. boosts share buyback, sets dividend

EditorNatashya Angelica
Published 15/05/2024, 21:46
TNL
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ORLANDO - Travel + Leisure Co. (NYSE:TNL), a global leader in membership and leisure travel, announced a regular cash dividend and an expansion of its share repurchase program. The company's board of directors declared a dividend of $0.50 per share, to be paid on June 28, 2024, to shareholders of record as of June 14, 2024.

In addition to the dividend, the board has approved an increase to the company's share repurchase program by $0.5 billion. This move is part of Travel + Leisure Co.'s ongoing strategy to enhance shareholder value.

The company is known for its innovative points-based vacation ownership program through Club Wyndham and its pioneering vacation exchange network, RCI. It operates over 245 timeshare resorts worldwide and offers tailored travel and membership products, including the Travel + Leisure GO subscription travel club.

The announcement comes amidst a challenging economic environment characterized by inflation, higher interest rates, and potential recessionary pressures. The travel industry has faced multiple disruptions due to geopolitical tensions, pandemics, and natural disasters.

Despite these challenges, Travel + Leisure Co. emphasizes its commitment to hospitality and responsible tourism, with over 19,500 associates dedicated to promoting the best in destinations and experiences across the globe.

The company cautions that this press release contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially. These statements are based on current operational, financial, and competitive information as of the date of the press release. Travel + Leisure Co. undertakes no obligation to update these statements in the event of new information or future events.

The information provided is based on a press release statement from Travel + Leisure Co. and does not include any additional analysis or data from external sources. The company's stock is publicly traded on the New York Stock Exchange under the ticker symbol TNL.

InvestingPro Insights

Amidst a complex economic landscape, Travel + Leisure Co. (NYSE:TNL) is taking decisive steps to reward its shareholders. The company's aggressive share buyback strategy, as highlighted by the InvestingPro Tips, is a strong signal of management's confidence in the company's value. With analysts revising their earnings upwards for the upcoming period, investors may find reassurance in the company's financial prospects.

From a valuation standpoint, TNL's current P/E ratio stands at a modest 8.38, which is lower than the adjusted P/E ratio for the last twelve months as of Q1 2024, indicating a potentially attractive entry point for investors considering near-term earnings growth. The InvestingPro Data also shows a solid dividend yield of 4.35% as of March 20, 2024, which, coupled with a consistent history of dividend payments for 18 consecutive years, underscores TNL's commitment to returning value to shareholders.

Investors looking to delve deeper into the metrics that drive TNL's performance can find additional insights and tips on InvestingPro. Currently, there are 9 more InvestingPro Tips available, which can provide a more comprehensive understanding of the company's financial health and market position. For those interested in taking advantage of these professional insights, remember to use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

As Travel + Leisure Co. navigates the headwinds of the travel industry, its strong fundamentals, including a robust gross profit margin of 48.27% for the last twelve months as of Q1 2024, and a healthy operating income margin of 20.02%, position the company to continue its trajectory of responsible growth and shareholder value creation.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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