10 Hospitality and Lodging Stocks Going Ex-Dividend on September 27, 2019

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hospitality and lodging stocks

Income-seeking investors might find a few interesting investment opportunities among the 10 hospitality and lodging stocks going ex-dividend on September 27, 2019.

All hospitality and lodging stocks on this list operate as Real Estate Investment Trusts (REITs) to take advantage of taxation rules and carry no corporate tax liability. However, to maintain the REIT status and pay no corporate tax, the REITs must distribute at least 90% of their earnings to shareholders. Therefore, all of these hospitality and lodging stocks have relatively high dividend yields that generally exceed market and industry averages.

Individual yields of these hospitality and lodging stocks range from 4.4% on the low end of the scale to 7.9% at the top. However, all current yields exceed the simple average yield of the overall Financial sector, as well as the peer average yield in the Diversified REITs industry segment.

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10 Hospitality and Lodging Stocks Going Ex-Dividend on September 27, 2019: #10

Ryman Hospitality Properties, Inc. (NYSE:RHP)

While having the lowest current yield of the group, Ryman Hospitality Properties is the only equity on this list that boosted its annual payout in 2019 and has an uninterrupted streak of consecutive annual dividend hikes. Over the past six consecutive years, Ryman Hospitality Properties has enhanced its annualized dividend payout 80%. This advancement pace corresponds to an average growth rate of more than 10% per year.

The current $0.90 quarterly payout amount is equivalent to a $3.60 annualized distribution and a 4.4% forward dividend yield, which is only slightly shy of the REIT’s own 4.66% yield average over the last five years. After a pullback driven by the late 2018 market correction, the share price recovered most of those losses but ended with a 2.4% total loss for the trailing one-year period. However, total returns over the last three and five years were 85% and 108%, respectively.

 

10 Hospitality and Lodging Stocks Going Ex-Dividend on September 27, 2019: #9

Host Hotels & Resorts, Inc. (NYSE:HST)

Host Hotels & Resorts distributes its $0.80 annual dividend distribution in $0.20 quarterly instalments. This current payout amount is equivalent to a 4.6% forward dividend yield which is slightly below (2.4%), but generally in line with, the REIT’s average yield over the past five years. However, the current yield outperforms the Financial sector’s 2.82% average yield by nearly 64% and outpaces the 3.8% simple average yield of the Diversified REITs industry segment by almost 22%.

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The REIT eliminated distributions for 2009 and did not resume its regular dividend payouts until the second quarter of 2010. However, since resuming regular payouts, the REIT has advanced its annual payout amount 20-fold. Even with the last three years of flat annual dividend payouts, the REIT’s average annual dividend growth rate still stands at nearly 40%.

 

10 Hospitality and Lodging Stocks Going Ex-Dividend on September 27, 2019: #8

DiamondRock Hospitality Company (NYSE:DRH)

DiamondRock Hospitality’s current $0.125 quarterly distribution is equivalent to a $0.50 annual payout and a 4.9% forward dividend yield, which outperforms the REIT’s own five-year average yield of 4.59% by 7.6%. Additionally, the current yield also outperformed by 30% the 3.8% yield average of the Diversified REITs industry segment and by 75% the 2.82% average yield of the entire Financial sector.

After pausing dividend distributions in the aftermath of the 2008 financial crisis, the REIT resumed regular dividend distributions in 2011 and hiked its annual payout for five subsequent years. Even without dividend increases since 2015, the REIT has more than doubled its annual dividend payout amount since 2011, which is equivalent to an average annual growth rate of 9.6%.

 

10 Hospitality and Lodging Stocks Going Ex-Dividend on September 27, 2019: #7

Xenia Hotels & Resorts, Inc. (NYSE:XHR)

Xenia Hotels & Resorts currently pays a $0.275 quarterly dividend, which translates to a $1.10 annualized dividend payout amount and yields 5.1%. This current yield is 9.2% higher than the company’s own 4.71% five-year average, as well as 64% higher than the Financial sector’s 2.82% simple average yield and 22% higher than the 3.8% yield average of the Diversified REITs industry segment.

While a share price pullback of nearly 10% over the last 12 months delivered a 6% total loss, the total return over the past three years exceeded 60%. Additionally, after losing nearly one-third of its value during the overall market correction in December 2018, the share price has risen 29.3% already and continues trending higher.

 

10 Hospitality and Lodging Stocks Going Ex-Dividend on September 27, 2019: #6

Pebblebrook Hotel Trust (NYSE:PEB)

The Pebblebrook Hotel Trust pays a current quarterly distribution of $0.38. This quarterly payout corresponds to an annualized payout of $1.52 and yields 5.4%, which is 23% above the REIT’s own 4.37% average yield over the last five years. Unlike the equities on the list ahead, the Pebblebrook Hotel Trust’s current yield is lower than the 6.66% average yield of only dividend-paying equities in the Diversified REITs industry segment. However, the current yield is still 42% above the segment’s overall yield average, as well as more than 90% above the Financial sector’s current average of 2.82%. Since formation in 2011, the REIT has more than tripled its annual dividend amount for an average annual growth rate of nearly 18%.

 

10 Hospitality and Lodging Stocks Going Ex-Dividend on September 27, 2019: #5

Chatham Lodging Trust (NYSE:CLDT)

The Chatham Lodging Trust has a current streak of four consecutive years without dividend hikes and flat annual distributions of $1.32 per share. Despite no recent growth, the REIT still has nearly doubled its annual dividend payout amount since its formation in 2010. With an average growth rate of 8.3% per year, the dividend payout rose to the current level of $0.11 each month, which converts to a $1.32 annualized distribution.

This current distribution level corresponds to a 7.3% forward dividend yield, which is 15% higher than the REIT’s own 6.33% yield average over the last five years. Nearly double the segment average and almost 10% above the average yield of the segment’s dividend-paying equities, the current yield is also nearly 160% above the Financial sector’s current yield average of 2.82%.

 

10 Hospitality and Lodging Stocks Going Ex-Dividend on September 27, 2019: #4

RLJ Lodging Trust (NYSE:RLJ)

RLJ Lodging Trust’s current quarterly dividend distribution corresponds to an annual dividend payout amount of $1.32 and a 7.6% forward dividend yield, which is 22% above the REIT’s own five-year yield average of 6.25%. In addition to outperforming it own average, RLJ’s current yield also outperformed the 2.82% average yield of the overall Financial sector and the 3.8% yield average of the Diversified REITs industry segment by significant margins.

Even without any dividend hikes in the past four years, the company managed to enhance its total annual dividend payout amount nearly 240% over the last eight years. This advancement corresponds to an average annual growth rate of 16.5%

 

10 Hospitality and Lodging Stocks Going Ex-Dividend on September 27, 2019: #3

Ashford Hospitality Trust, Inc. (NYSE:AHT)

The Ashford Hospitality Trust makes this list in the third spot only because the list is sorted by the current dividend yield. On the surface, the current 7.7% yield outperforms the 2.82% average yield of the entire Financial sector by nearly 172%. The current yield is also twice the 3.8% yield average of the Diversified REITs industry segment and has outperformed the average yield of the segment’s only dividend-paying equities by more than 15%.

However, the REIT has cut its quarterly dividend in half for its last two quarters of the year and next year’s dividend will be significantly lower than the 2019 payout. The REIT maintains a high yield only because of a 50% share price decline over the trailing 12 months. Despite a very high yield, income-seeking investors might find better investment opportunities among the remaining entries on the list.

 

10 Hospitality and Lodging Stocks Going Ex-Dividend on September 27, 2019: #2

CorePoint Lodging, Inc. (NYSE:CPLG)

CorePoint Lodging pays a current dividend of $0.20 per quarter for an annualized dividend of $0.80. This annualized dividend payout amount corresponds to a 7.7% forward dividend yield, which outperforms the 2.82% simple average of the entire Financial sector by more than 170%. Additionally, CorePoint Lodging current yield is also more than twice the 3.8% yield average of the Diversified REITs industry segment, as well as 15% above the 6.66% average yield of only the segment’s dividend-paying equities.

However, investors should be cautious, as the share price has declined nearly 50% over the trailing 12 months. The dividend distributions managed to offset some of those losses, but the REIT still delivered a 42% combined total loss for the trailing year.

 

10 Hospitality and Lodging Stocks Going Ex-Dividend on September 27, 2019: #1

Starwood Property Trust, Inc. (NYSE:STWD)

Starwood Property’s current $0.48 quarterly dividend corresponds to a 7.9% forward dividend yield. This current yield is nearly 8% lower than the company’s own 8.54% five-year yield average because the share price growth rate outpaced the annual dividend growth. However, Starwood Property’s current yield is nearly 180% higher than the 2.82% average yield of the overall Financial sector, as well as double the 3.8% yield average of the Diversified REITs industry segment and 18% above the 6.66% yield average of only the segment’s dividend-paying companies. Even with five years of flat dividend payouts, the REIT enhanced its annual payout 137% over the past nine years for an average annual growth rate of 10%.

The list of the top hospitality and lodging stocks going ex-dividend on September 27, 2019, ranks the REITs solely by their current forward dividend yield. Investors should conduct their own due diligence to confirm that various other metrics, such as share-price trend, payout ratios, long-term and short-term total returns, etc., support their portfolio strategies and choose their investment equities accordingly.

 


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Ned-Piplovic

 

Ned Piplovic is the assistant editor of website content at Eagle Financial Publications. He graduated from Columbia University with a Bachelor’s degree in Economics and Philosophy. Prior to joining Eagle, Ned spent 15 years in corporate operations and financial management. Ned writes for www.DividendInvestor.com and www.StockInvestor.com.


 

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