Skift Take

By increasing its dividend, Expedia management has put its money where its mouth is in expressing confidence about the future of the company. The takeaway: Expedia officials believe its second quarter stumble was an aberration.

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.

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Tags: earnings, expedia

Photo credit: While Expedia's customers dream of their next vacation, Expedia's shareholders can count on a nice dividend increase next month. Expedia

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