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.
