A Shareholder Friendly Company?
Cramer loves companies that consistently boost their dividend and aggressively buy back stock, like Wyndham Worldwide.
The Parsippany, N.J.-based company lodging operates a number of brands, including Ramada, Days Inn, Super 8 and Howard Johnson, among others. It also has a number of vacation ownership interests or time shares, as well as a time share exchange and rental business.
On Wednesday, Wyndham reported a terrific quarter. It posted a 4 cent earnings beat off a 40 cent basis on revenues that rose by 7.4 percent year-over-year, Cramer said. The company also raised its full-year earnings forecast for 2011 and announced a $500 million increase to its buyback, he added. Investors could have saw this beat coming, Cramer said. After all, the company boosted its dividend by 25 percent in February.
While Wyndham may only yield 1.75 percent, Cramer noted its growth increased by 113 percent in the last year. He thinks the yield would be higher if the stock would stand still, but it's only increased lately. Wyndham shares have soared by 51 percent since Cramer recommended the stock in February 2011 when it was trading at $22.54. Cramer still thinks Wyndham is a great stock, but he wanted to learn more about the company's future prospects and invited CEO Stephen Holmes onto "Mad Money." To see his full interview, watch the video.
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