Last month I sold half of my Wyndham Worldwide (NYSE: WYN) position. I had a big capital gain and Wyndham had ballooned to the largest holding I had by a longshot. It was just too big and I felt the need to reduce exposure. I still like Wyndham, and so I still hold a position roughly half of what it was. There's plenty of dividend growth ahead, even if revenue and EBITDA growth is slower than expected. It was time to raise some cash.
Speaking of which, I'm using these high stock market levels to get out of several businesses I no longer want to be in. Verizon Communications (NYSE: VZ) is another one of those. Long story short, the telecom industry is in a period of profound disruption and I am rather unsure whether Verizon's strategy of acquiring the Huffington Post and AOL is the forward-looking way. Nimbler peers such as T-Mobile, which do not have the burden of a gigantic dividend to pay, appear much more able to respond and lead the curve.
On the other hand, I nibbled a little more on Apple Hospitality REIT (NYSE: APLE). I like being invested in hotels, and this, I felt, was an undervalued, income-oriented choice. I continue to like Apple Hospitality because it is underowned, underloved and has a solid business model of owning and building name-brand hotels in suburban markets which are somewhat insulated from the global economy.
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