Spinoff should lift your returns and income

Article Excerpt

On June 4, 2018, Wyndham Worldwide (old symbol WYN) separated from its Wyndham Hotels operations. For every WYN share investors held, they received one share each of the new companies—Wyndham Destinations and Wyndham Hotels and Resorts. While COVID-19 has hurt the new firms’ short-term outlook, we remain confident that the split will boost their share prices as travel volumes improve. That will also give them more flexibility to raise their dividends. WYNDHAM DESTINATIONS INC. $35 is still a buy. The company (New York symbol WYND; Cyclical-Growth Payer Portfolio, Consumer sector; Shares outstanding: 86.9 million; Market cap: $3.0 billion; Dividend yield: 5.7%; Dividend Sustainability Rating: Above Average, www.wyndhamdestinations.com) lets your tap the world’s largest vacation ownership and exchange company. It operates 220 vacation timeshare resorts with 880,000 owners. With the March 2020 payment, Wyndham Destinations increased the quarterly dividend by 11.1%, to $0.50 a share from $0.45. The new annual rate of $2.00 yields a high 5.7%. In the quarter ended March 31, 2020, revenue fell 267.5%, to $558…

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