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    Richer Dividend And Buybacks Could Be A Game Changer For Marriott Vacations Worldwide (VAC)

    Simply Wall St·12/25/2025 07:32:23
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    • Earlier this month, Marriott Vacations Worldwide Corporation announced that its Board of Directors raised the quarterly dividend to US$0.80 per share, payable around January 7, 2026, to shareholders of record on December 24, 2025.
    • The higher dividend, alongside the extension of the share repurchase plan through December 31, 2026, underscores management’s focus on returning capital to investors and confidence in the company’s cash generation.
    • Next, we’ll consider how the richer dividend payout influences Marriott Vacations Worldwide’s existing investment narrative built around growth and modernization.

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    Marriott Vacations Worldwide Investment Narrative Recap

    To own Marriott Vacations Worldwide, you need to believe in the long term appeal of branded timeshare and vacation ownership, even as near term headwinds weigh on earnings and owner sales. The dividend increase and extended buyback highlight capital returns, but they do not materially change the key near term catalyst, which remains a recovery in contract sales, or the biggest risk, which is pressure on margins from rising costs and softer rental profitability.

    The extension of the share repurchase plan through December 31, 2026, is particularly relevant here, as it sits alongside a higher US$0.80 quarterly dividend at a time when total shareholder returns have been weak. With interest costs and loan loss provisions under scrutiny, how the company balances cash returns with reinvestment in newer, more expensive inventory will influence how quickly it can address margin pressure and restore confidence in its growth story.

    Yet behind the higher dividend, investors should be aware of rising loan loss provisions and what they could mean for...

    Read the full narrative on Marriott Vacations Worldwide (it's free!)

    Marriott Vacations Worldwide's narrative projects $6.3 billion revenue and $355.3 million earnings by 2028.

    Uncover how Marriott Vacations Worldwide's forecasts yield a $64.00 fair value, a 10% upside to its current price.

    Exploring Other Perspectives

    VAC 1-Year Stock Price Chart
    VAC 1-Year Stock Price Chart

    Seven members of the Simply Wall St Community currently see fair value anywhere from US$64 to over US$72,000 per share, showing just how far opinions can stretch. Against that backdrop, the recent dividend hike and extended buyback sit alongside concerns about rising loan loss provisions, inviting you to compare very different expectations for how resilient Marriott Vacations Worldwide’s earnings might be.

    Explore 7 other fair value estimates on Marriott Vacations Worldwide - why the stock might be worth just $64.00!

    Build Your Own Marriott Vacations Worldwide Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.