DiamondRock Hospitality (NYSE:DRH) Declares Dividend Increase – $0.08 Per Share

DiamondRock Hospitality (NYSE:DRH) declared a quarterly dividend on Thursday, February 27th, Wall Street Journal reports. Stockholders of record on Friday, March 28th will be given a dividend of 0.08 per share by the real estate investment trust on Friday, April 11th. This represents a $0.32 annualized dividend and a dividend yield of 4.06%. The ex-dividend date of this dividend is Friday, March 28th. This is a 166.7% increase from DiamondRock Hospitality’s previous quarterly dividend of $0.03.

DiamondRock Hospitality has a payout ratio of 68.1% meaning its dividend is sufficiently covered by earnings. Research analysts expect DiamondRock Hospitality to earn $1.02 per share next year, which means the company should continue to be able to cover its $0.32 annual dividend with an expected future payout ratio of 31.4%.

DiamondRock Hospitality Stock Performance

Shares of DRH stock opened at $7.89 on Wednesday. The firm’s 50 day moving average is $8.45 and its 200 day moving average is $8.83. The stock has a market capitalization of $1.64 billion, a P/E ratio of 28.18, a PEG ratio of 2.06 and a beta of 1.63. DiamondRock Hospitality has a 12 month low of $7.65 and a 12 month high of $10.00. The company has a current ratio of 1.73, a quick ratio of 1.73 and a debt-to-equity ratio of 0.66.

Analyst Upgrades and Downgrades

Separately, Wells Fargo & Company reduced their price target on DiamondRock Hospitality from $10.50 to $9.50 and set an “equal weight” rating for the company in a research report on Tuesday, February 18th. Four analysts have rated the stock with a hold rating and one has given a buy rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $10.05.

About DiamondRock Hospitality

DiamondRock Hospitality Company is a self-advised real estate investment trust (REIT) that is an owner of a leading portfolio of geographically diversified hotels concentrated in leisure destinations and top gateway markets. The Company currently owns 36 premium quality hotels with over 9,700 rooms. The Company has strategically positioned its portfolio to be operated both under leading global brand families as well as independent boutique hotels in the lifestyle segment.