Morgan Stanley has upgraded Marriott Vacations Worldwide (NYSE: VAC) from “Underweight” to “Equal-Weight” with a target price of $57. This change reflects growing optimism around the company’s improving fundamentals and income potential.
🌟 Stabilizing Revenue Picture: Marriott Vacations is seeing a noticeable rebound in its revenue trajectory. With expected annual revenues climbing to $5.279 billion—a substantial 65% jump—analysts are growing more confident in its operational momentum.
💰 Dividend Fundamentals: What stands out most to income-focused investors is VAC’s eye-catching forward dividend yield of 5.94%. That’s well above its 10-year average of 1.71%, signaling a strong return of capital to shareholders. The company currently pays an annual dividend of $3.16 per share, supported by a payout ratio of 56.13%, offering both sustainability and income potential.
📈 Building Institutional Confidence: Institutional investors appear to be noticing the shift. Total institutional ownership increased by nearly 4% last quarter, pointing to rising confidence in the stock’s trajectory.
Marriott Vacations Worldwide may not have always been the market’s favorite, but with stabilizing growth and a standout dividend yield, this upgrade suggests it’s worth a second look for long-term investors.