DiamondRock Hospitality Company (NYSE:DRH) stays the course on dividend payout


Dallas, Texas 10/03/2013 (Financialstrend) – DiamondRock Hospitality Company (NYSE:DRH) on September 9 declared a $0.085 quarterly dividend payout per share to its share holders. The dividend is payable on October 10, to its share holders on record as of September 30. The ex dividend date has been set at September 26.

The current dividend payout is in line with its previous payout patterns and sums up to 3.12% dividend yield for trailing 12 months period. $0.34 is the annual dividend payout for the previous 12 months.

The dividend payout is in spite of the sever loss of property and disruption in business suffered due to the recent Colorado floods in the general area of operations of DRH. On September 23 SLN Financial published its interim findings which peg the losses at $ 2 billion, half of which would be borne by housing and commercial sectors. While DRH is not one of the majorly effected parties it is exposed to the general downward pull in business sentiments and lack of customer interest post the floods. So analysts believe that the company next quarter performance might be impacted due to floods. On a 12 month trailing period basis Diamondrock has recorded a divided yield of 3.12% with close to $0.34 being paid out as annual dividend.

In a related development in the last couple of months, Blackstone withdrew its investments form DRH and currently does not hold any stock of the company. This was in spite of a strong 2Q performance from Diamondrock with revenue of $224.2M being reported in the quarter. Currently the stock is not held by any institutional investor.

The firm has a market capitalization of $2.13 billion with shares outstanding of $195 million. It had recorded a net loss of $3.5 million after registering sales of $855 million over a 12 month trailing period.