Marriott Vacations Worldwide Corporation (VAC) will suspend its quarterly dividend in 2020 because of COVID-19. Last December VAC had announced a 20.0 percent dividend hike to $0.54 per share, marking 5 consecutive years of dividend increases. The vacation ownership company initiated a dividend in 2014.

In a press release dated May 6, 2020 Marriott Vacations Worldwide Corporation reported preliminary first quarter 2020 financial results and provided an operational update on business conditions in light of the COVID-19 pandemic, including the announcement that the company will temporarily suspend share repurchases and dividend payments.

The last dividend of 54 cents per share was paid to shareholders on March 12, 2020. By cutting the dividend Marriott Vacations Worldwide Corporation will save an estimated $89 million in dividend payments to shareholders annually.

Many other leisure and travel companies have been cutting or suspending their dividend recently because of the COVID-19 pandemic.

Marriott Vacations Worldwide Corporation is a global vacation ownership company that offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products and services. It also includes exchange networks and membership programs, as well as management of other resorts and lodging properties. Its seven vacation ownership brands include Marriott Vacation Club, The Ritz-Carlton Destination Club and Grand Residences by Marriott. The company maintains exclusive, long-term relationships with Marriott International and Hyatt Hotels Corporation for the development, sales and marketing of vacation ownership products and services. Marriott Vacations has been publicly traded since November 2011, entering the industry in 1984 as part of Marriott International, Inc. (MAR). The company operates through three segments North America, Europe and Asia Pacific. The vacation ownership company initiated a dividend in 2014 and suspended the dividend in 2020 because of COVID-19.