DiamondRock Hospitality Company (NYSE:DRH) to Issue Quarterly Dividend of $0.09

DiamondRock Hospitality Company (NYSE:DRH) announced a quarterly dividend on Thursday, February 26th. Investors of record on Tuesday, March 31st will be given a dividend of 0.09 per share by the real estate investment trust on Tuesday, April 14th. This represents a c) annualized dividend and a yield of 3.6%. The ex-dividend date of this dividend is Tuesday, March 31st. This is a 12.5% increase from DiamondRock Hospitality’s previous quarterly dividend of $0.08.

DiamondRock Hospitality has decreased its dividend payment by an average of 0.1%annually over the last three years and has increased its dividend every year for the last 1 years. DiamondRock Hospitality has a payout ratio of 71.1% indicating that its dividend is sufficiently covered by earnings. 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 Price Performance

DiamondRock Hospitality stock traded down $0.20 during midday trading on Friday, hitting $10.14. 909,713 shares of the company’s stock were exchanged, compared to its average volume of 2,956,421. The company has a market cap of $2.06 billion, a P/E ratio of 40.45, a PEG ratio of 4.50 and a beta of 1.03. The company has a debt-to-equity ratio of 0.70, a quick ratio of 1.64 and a current ratio of 1.64. The stock has a 50-day moving average price of $9.45 and a two-hundred day moving average price of $8.74. DiamondRock Hospitality has a 52-week low of $6.18 and a 52-week high of $10.67.

DiamondRock Hospitality (NYSE:DRH) last issued its quarterly earnings results on Thursday, February 26th. The real estate investment trust reported $0.27 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.24 by $0.03. DiamondRock Hospitality had a return on equity of 4.04% and a net margin of 5.69%.The firm had revenue of $274.53 million during the quarter, compared to the consensus estimate of $273.18 million. During the same quarter last year, the company posted $0.24 EPS. The company’s revenue for the quarter was down 1.6% on a year-over-year basis. DiamondRock Hospitality has set its FY 2026 guidance at 1.090-1.160 EPS. On average, equities research analysts forecast that DiamondRock Hospitality will post 0.96 earnings per share for the current year.

Analyst Upgrades and Downgrades

A number of research firms have commented on DRH. Barclays initiated coverage on shares of DiamondRock Hospitality in a research note on Tuesday, January 6th. They issued an “equal weight” rating and a $10.00 price target for the company. Deutsche Bank Aktiengesellschaft raised DiamondRock Hospitality from a “hold” rating to a “buy” rating and increased their target price for the company from $10.00 to $12.00 in a research note on Tuesday, January 13th. Wells Fargo & Company lifted their price target on DiamondRock Hospitality from $9.00 to $10.00 and gave the stock an “equal weight” rating in a research note on Monday, December 1st. Truist Financial upgraded DiamondRock Hospitality from a “hold” rating to a “buy” rating and upped their price objective for the stock from $10.00 to $11.00 in a report on Friday, January 9th. Finally, Evercore raised their price objective on DiamondRock Hospitality from $9.00 to $10.00 and gave the company an “in-line” rating in a report on Thursday, November 20th. Three investment analysts have rated the stock with a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $9.91.

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.