Wyndham Worldwide Corp (WYN)

This is really 2 companies in one. One that he loves, and one that he doesn’t love so much. The one he loves is the timeshare business, a very profitable and stable business, where they build timeshares, and then sell them and collect the fees they are paid to maintain the properties. A very lucrative and steady business and one that benefits from the growth of Asians, especially those that are looking to invest money overseas. The other half of the business is a hotel business, and the reason the stock has been somewhat of a laggard this year. This has tremendous free cash flow yield of 9%, which he thinks is enough to sustain them. Dividend yield of 2.8%. (Analysts’ price target is $82.69.)