On Friday Cramer wrapped up his week long series on companies that have raised their dividend substantially. This is a signal of confidence, he said, for long-term future prospects. If that’s truly the case, then the future seems bright for Wyndham Worldwide, which recently upped its payout by a massive 200 percent.
“When a company triples its dividend,” Cramer said, “investors better take notice.”
Wyndham Worldwide is a hotel, resort and time-sharing company, which on Wednesday boosted its quarterly dividend to 12 cents a share from only 4 cents. The company also announced it would continue to raise its dividend in the future, and there seems to be plenty of money to cover it: 2010 and 2011 earnings should come in at least three times higher than the dividend.
Plus, on top of Wyndham’s huge dividend increase it’s also pro-shareholder, Cramer said. The company reinstated its stock repurchase authorization, a buyback with $157 million remaining, and that should buoy the share price.Page 1 of 2 | Next Page