Online travel company Expedia Group Inc. (NASDAQ: EXPE) has seen its share price languish since the beginning of last year, currently trading near the company’s 52-week low.
Investors considering technology companies at this point in time are increasingly thinning out, with many instead moving toward other growth sectors or toward the safety of value stocks at this point in time.
The bull market in the technology sector overall is still going strong, although concerns have arisen that valuations for some firms may have gotten ahead of fundamentals, resulting in pause among many in recent months.
Expedia’s business model is one which appears to have provided the company with a relatively wide moat, despite continued competition and pricing threats which remain ever-present.
The company’s current valuation is one which, for its sector, appears to be quite attractive (a forward price to earnings ratio of less than 20), and another factor which some investors (albeit not many) may envy is the company’s dividend yield.
Despite having a dividend yield which appears to be quite small (currently Expedia’s forward dividend yield sits around 1.1%), the reality is that this company has committed to growing said dividend dramatically over the past five years, increasing its dividend distributions by more than 20% each year over this time frame.
As I have mentioned previously, dividend growth rates for many companies, along with strong fundamentals, could provide greater upside to investors long-term, given the fact that dividend yields which rise faster than inflation should, at least in theory, provide income-oriented investors with additional value.
Invest wisely, my friends.
