First Free Story (1 of 3)Join Skift Pro
Despite a tough second quarter in which troubles integrating Orbitz Worldwide contributed to missing revenue expectations and a deceleration in hotel room night growth, Expedia Inc. is raising its dividend 8.3 percent to $0.26 per share.
Besides being a nice windfall for shareholders, payable on September 15, why is the dividend increase important?
Because it shows that Expedia management has confidence in the company’s trajectory and future earnings despite missteps in the second quarter, with the company acknowledging that integrating Orbitz was a huge distraction.
In contrast, two of Expedia’s rivals, the Priceline Group and TripAdvisor, do not pay shareholders a dividend.
Expedia’s dividend goes to shareholders of record as of close of business August 25, 2016.