Making It Look Easy

 | Feb 06, 2013 | 3:20 PM EST  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

wyn

Steve Holmes makes it all look so easy. If you do not know Holmes, he's CEO of Wyndham Worldwide (WYN), which is a hotel and timeshare business that has been one of the best stocks of the era.

Fifteen months ago, this $60 stock stood at $26. It's been an amazing journey filled with buybacks and dividend boosts, including today's increase to $0.29 from $0.23 and an acceleration in earnings growth to 30% from 25%.

Holmes is one of the most aggressive buyers of his stock out there. He has bought back 44 million shares out of a total 188 million shares in the last two years. Typically, I like companies that spend more on dividends and less on buybacks, but Wyndham's an example of a company that can and does give you both in terrific fashion.

The vacation ownership (timeshare) and timeshare exchange programs, which account for a little more than 80% of the business, are booming as global travel stays on the increase. Hotels are showing terrific gains, too, with revenues increasing 19%.

I don't advise people to buy up 4 points. But I would say that given the tremendous buyback, you should put Wyndham on the shopping list any time it's down.

You can bet the company will be in there buying right along with you.

Columnist Conversations

According to the charts on CNBC, the 2014 low for the S&P 500 is 1770. That's 63 points from where we are...
I have in the past been long some of your porfolio holdings - but my larger play has been shorting them in the...
Usual semi-annual testimony before the House Financial Services Committee on Wednesday and Thursday Caveat Em...
I've owned most of the names I mentioned for a long time. I was buying Apple back in 2003, as noted here on Re...

BEST IDEAS

REAL MONEY'S BEST IDEAS

News Breaks

Powered by

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.