DiamondRock Hospitality Company (NYSE:DRH) Increases Dividend to $0.11 Per Share

Key Points

• DiamondRock Hospitality raised its quarterly dividend 22.2% to $0.11 per share, payable October 14 to shareholders of record on September 30. The dividend implies a 3.4% annualized yield.
• The REIT reported quarterly earnings of $0.44 per share, beating estimates of $0.22, while revenue rose 4.1% year over year to $318.29 million.
• Analysts remain cautiously positive, with four Buy ratings and seven Holds; the consensus rating is Hold with a $12.12 price target.

DiamondRock Hospitality Company (NYSE:DRH - Get Free Report) announced a quarterly dividend on Thursday, July 30th. Investors of record on Wednesday, September 30th will be paid a dividend of 0.11 per share by the real estate investment trust on Wednesday, October 14th. This represents a c) annualized dividend and a dividend yield of 3.4%. The ex-dividend date of this dividend is Wednesday, September 30th. This is a 22.2% increase from DiamondRock Hospitality's previous quarterly dividend of $0.09.

DiamondRock Hospitality has a payout ratio of 80.0% indicating that its dividend is currently covered by earnings, but may not be in the future if the company's earnings tumble. Analysts expect DiamondRock Hospitality to earn $1.02 per share next year, which means the company should continue to be able to cover its $0.36 annual dividend with an expected future payout ratio of 35.3%.

DiamondRock Hospitality Trading Down 1.8%

Shares of DRH stock opened at $12.91 on Friday. DiamondRock Hospitality has a 12-month low of $7.45 and a 12-month high of $13.24. The company has a market capitalization of $2.64 billion, a PE ratio of 51.64, a price-to-earnings-growth ratio of 4.50 and a beta of 0.98. The firm has a 50 day moving average price of $12.00 and a two-hundred day moving average price of $10.60. The company has a quick ratio of 1.64, a current ratio of 1.64 and a debt-to-equity ratio of 0.70.

DiamondRock Hospitality (NYSE:DRH - Get Free Report) last released its quarterly earnings results on Thursday, July 30th. The real estate investment trust reported $0.44 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.22. The business had revenue of $318.29 million during the quarter, compared to analysts' expectations of $314.98 million. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%.The firm's revenue for the quarter was up 4.1% compared to the same quarter last year. During the same period last year, the firm posted $0.35 EPS. DiamondRock Hospitality has set its FY 2026 guidance at 1.180-1.230 EPS. As a group, analysts predict that DiamondRock Hospitality will post 0.96 earnings per share for the current year.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on the stock. LADENBURG THALM/SH SH raised their target price on shares of DiamondRock Hospitality from $13.00 to $14.00 and gave the stock a "buy" rating in a report on Thursday, June 18th. Bank of America raised their price target on DiamondRock Hospitality from $12.50 to $13.00 and gave the stock a "buy" rating in a research report on Monday, July 20th. Truist Financial boosted their price target on DiamondRock Hospitality from $11.00 to $12.00 and gave the company a "buy" rating in a research note on Tuesday, May 26th. Barclays upped their price objective on shares of DiamondRock Hospitality from $10.00 to $12.00 and gave the stock an "equal weight" rating in a research report on Monday, June 1st. Finally, Wells Fargo & Company increased their price objective on shares of DiamondRock Hospitality from $12.00 to $13.00 and gave the stock an "equal weight" rating in a research note on Thursday, July 23rd. Four equities research analysts have rated the stock with a Buy rating and seven have assigned a Hold rating to the company's stock. Based on data from MarketBeat, DiamondRock Hospitality currently has a consensus rating of "Hold" and a consensus target price of $12.12.

About DiamondRock Hospitality

DiamondRock Hospitality Company is a real estate investment trust (REIT) that acquires, owns and manages a diversified portfolio of upscale, full-service hotels in urban gateway markets across the United States. Established in 2004 and headquartered in Bethesda, Maryland, the company focuses on investing in high-quality lodging properties that cater to both business and leisure travelers. Its assets are positioned in key metropolitan areas, enabling DiamondRock to benefit from strong demand drivers such as corporate travel, group conventions and resort leisure stays.

The company's portfolio includes full-service hotels offering a broad range of amenities, including guest rooms, on-site food and beverage outlets, meeting and event space, fitness centers and spa services.

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