U.S. consumers traveled in record numbers over the Thanksgiving weekend, with Dec. 1 seeing over 3 million passengers pass through airports nationwide.

This surge in travel and strong consumer spending bodes well for Park Hotels & Resorts (PK), a real estate investment trust (REIT) spun off from Hilton in 2019. It is one of the top dividend stocks in IBD's Dividend Leaders screen.

Park Hotels manages 41 upscale resort and hotel properties across the U.S., positioning it to benefit from the travel boom. In Q3, earnings doubled to 26 cents a share from a year ago, according to MarketSurge.

For income-focused investors, Park Hotels offers an attractive dividend yield. The company aims for a 65%-70% payout ratio based on annual funds from operations (FFO), which results in variable distributions.

Recently, Park Hotels announced a one-time outsize quarterly dividend of 65 cents per share for shareholders of record at the end of this year. For the year, distributions come out to a sizzling 8.9% yield at current share prices.

Dividend Stock Faced Strikes, Hurricanes

Despite benefiting from strong consumer demand, Park Hotels has faced challenges this year.

Hurricanes Helene and Milton disrupted operations at the company's Florida properties in the current quarter, causing a $30 million EBITDA hit. Additionally, a six-week labor union strike that affected various properties impacted margins, even delaying the company's release of an update to its 2024 outlook.

Seeing these issues in the rearview is great news for investors. However, challenges remain. Some properties, such as the Hilton in Hawaii, are underperforming as Japanese tourism slows due to a weaker yen. Furthermore, high-end hotel bookings, however strong at the moment, are particularly vulnerable to any potential economic downturn.

Shares of Park Hotels and Resorts are currently trading above both 50- and 200-day moving averages. The stock is forming a cup base with an 18.05 buy point, per MarketSurge pattern recognition.

Analysts remain cautiously optimistic, with a mean price target of 17.25, based on FactSet data. While risks like economic softness could temper growth, the company's strong position in the travel sector and generous distributions make it an option for investors seeking income.

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