Daily Stock Pick: Wyndham Destinations
A portfolio of stocks I've been building since September 3, 2019, named Volio, will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today I'm reviewing the first of five consumer cyclical sector stocks primed to join Volio as the seventh of seven representing the sector. One of the stocks I discuss this week could be the forty-eighth overall Volio selection!
My subject today is a mid-cap lodging company named, Wyndham Destinations Inc. Its trading ticker is WYND. This is my first report on Wyndham Destinations Inc for any of my portfolios.
Wyndham Destinations Inc is a hotel company. The company's reportable segments are Vacation Ownership and Vacation Exchange segment.
The Vacation Ownership segment develops, markets, and sells vacation ownership interests (VOIs) to individual consumers and provides consumer financing in connection with the sale of VOIs and offers property management services at resorts.
The Vacation Exchange segment provides vacation exchange services and products to owners of VOIs and manages and markets vacation rental properties on behalf of independent owners. The firm generates a majority of its revenue from the Vacation Ownership business segment.
As of December 31, 2019, it had approximately 230 vacation ownership resorts. The company also offers private-label travel booking technology solutions.
Wyndham Destinations, Inc. also has relationships with approximately 4,200 vacation ownership resorts.
The company was formerly known as Wyndham Worldwide Corporation and changed its name to Wyndham Destinations, Inc. in May 2018.
Wyndham Destinations, Inc. was founded in 1990 and is headquartered in Orlando, Florida.
I use three key data points to gauge dividend equities or funds like Wyndham Destinations Inc:
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether a company has made, is making, and will make money.
WYND Price
Wyndham's price per share closed at $29.23 yesterday. A year ago their price was $46.96. Price fell $17.73 or over 37.75% last year.
Assuming Wyndham's stock trades in the range of $15 to $40 this next year, its recent $29.23 price might rise by $5.77 to reach $35.00 by July 27, 2021.
WYND Dividends
Wyndham's most recent declared quarterly dividend was $0.50, paid June 30th. That $0.50 Q dividend equates to $2.00 annually for a yield of 6.84% at yesterday's $29.23 share price.
WYND Gains?
Adding the $2.00 annual estimated dividend to my $5.77 optimistic estimate of Wyndham's price upside shows a $7.77 potential gross gain, per share, to be reduced by any costs to trade the shares.
If we put little under $1,000.00 today in Wyndham Destinations Inc we would buy 34 shares of WYND stock.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.29 per share.
Subtract that $0.29 brokerage cost from my estimated $7.77 gross gain per share results in a net gain of $7.48 X 34 shares = $254.32 for a 25.4% net gain on a $993.82 investment.
Thus, Wyndham Destinations Inc shows a possible 25.4% net gain including a 6.84% dividend yield. It could be more, it could be less.
The above speculation is based on past performance and supposition. Only time and money invested will tell if Wyndham Destinations Inc is worth it.
Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...
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