3 travel stocks to set your ASX dividend portfolio free

Holidays are good, but making money while going on holiday is even better. Corporate Travel Management Ltd (ASX: CTD), Flight Centre Travel Group Ltd (ASX: FLT) and Webjet Limited (ASX: WEB) could help you do just that.

Corporate Travel Management

Corporate Travel says what it does on the tin: corporate travel. The company’s shares have returned some 800% over the past five years. The rally appears to be a result of the company’s organic and acquisitive growth. Corporate Travel estimates that its market share in key overseas growth markets like the USA and Asia is less than or equal to 1%. That should leave plenty of room to steal market share away from competitors.

However, with the company’s shares trading at over 36 times its profits you will have to pay-up for a slice of this business.

Flight Centre

It seems Corporate Travel’s gain is Flight Centre’s loss. Shares in Australia’s largest retail travel agent have fallen 32% over the past year as it reported profit downgrades. Nonetheless, at these prices, there is more than one reason to be bullish on the company’s outlook. For example, it is tipped to offer a 4.5% fully franked dividend and is diversifying its operations, pushing further in the USA and Europe, as well as increasing its presence online and in the corporate travel market.


Like Corporate Travel, Webjet has continued to grow rapidly. Rather than have a physical presence Webjet specialises in cheap online flights, hotels and packages. The company is now valued at over $1 billion. Although its shares appear expensive at first glance, if it can continue to grow revenue, its current price could be a great investment. That’s because it has really good economics, with a lot of new sales revenue falling straight to the bottom line (profit).

Foolish Takeaway

If you owned all three of these travel companies over the past five years, you would have been well-rewarded for your investment. Looking ahead, I think Flight Centre is the best value while Corporate Travel appears to be a good one for the long-term. However, its shares appear a little pricey, so if you do some research and decide to invest it may be wise to buy shares slowly over time.

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Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in any company mentioned. Owen encourages your feedback. You can follow him on Twitter @OwenRask.

The Motley Fool Australia owns shares of Corporate Travel Management Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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