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

DiamondRock Hospitality (NYSE:DRH) declared a quarterly dividend on Thursday, February 27th, Wall Street Journal reports. Investors of record on Friday, March 28th will be paid 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 3.90%. The ex-dividend date is Friday, March 28th. This is an increase from DiamondRock Hospitality’s previous quarterly dividend of $0.03.

DiamondRock Hospitality has a dividend payout ratio of 191.7% meaning the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect DiamondRock Hospitality to earn $1.02 per share next year, which means the company should continue to be able to cover its $0.92 annual dividend with an expected future payout ratio of 90.2%.

DiamondRock Hospitality Stock Performance

NYSE:DRH traded up $0.04 during trading hours on Friday, hitting $8.21. 6,888,378 shares of the company were exchanged, compared to its average volume of 1,730,481. The company has a debt-to-equity ratio of 0.66, a current ratio of 1.73 and a quick ratio of 1.73. DiamondRock Hospitality has a 52-week low of $7.74 and a 52-week high of $10.00. The stock has a market capitalization of $1.70 billion, a price-to-earnings ratio of 29.33, a PEG ratio of 2.06 and a beta of 1.57. The company’s 50 day moving average price is $8.80 and its 200-day moving average price is $8.86.

Wall Street Analysts Forecast Growth

DRH has been the topic of a number of research analyst reports. Evercore ISI lowered shares of DiamondRock Hospitality from an “outperform” rating to an “inline” rating and set a $10.50 price objective on the stock. in a report on Friday, November 15th. StockNews.com upgraded DiamondRock Hospitality from a “sell” rating to a “hold” rating in a research note on Tuesday, November 12th. Stifel Nicolaus cut DiamondRock Hospitality from a “buy” rating to a “hold” rating and reduced their price objective for the stock from $10.75 to $10.25 in a research note on Friday, November 22nd. Finally, Wells Fargo & Company decreased their target price on DiamondRock Hospitality from $10.50 to $9.50 and set an “equal weight” rating for the company in a report on Tuesday, February 18th. Four analysts have rated the stock with a hold rating and one has given a buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $10.05.

DiamondRock Hospitality Company Profile

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.