Dividend hikes signal their renewed growth

Article Excerpt

The coronavirus pandemic forced the cancellation of most vacation plans. Now, however, with COVID-19 vaccination numbers rising, the outlook for both these stocks is bright again. We see both as buys. WYNDHAM HOTELS & RESORTS, $86.30, is suitable for your new buying. The company (New York symbol WH; TSINetwork Rating: Extra Risk) (www.wyndhamhotels.com; Shares outstanding: 93.2 million; Market cap: $8.0 billion; Dividend yield: 1.1%) is the world’s largest hotel franchiser, with 802,600 rooms spread across 9,000 hotels in 95 countries. Its portfolio of 20 brands includes Super 8, Days Inn, Ramada, La Quinta and Wyndham. Revenue in the quarter ended September 30, 2021, rose 37.4%, to $463 million from $337 million a year earlier. Earnings jumped 220.6%, to $109 million, or $1.16 a share, from $34 million, or $0.36. The company is building or converting more than 1,400 hotels worldwide over the next few years. Their addition will add more than 190,000 rooms to its network. Approximately 64% will be outside the U.S. Meanwhile, Wyndham raised its quarterly…