Wyndham Destinations (WYND) will cut its quarterly dividend by 40.0 percent to 30 cents per share in the third quarter of 2020.

The vacation ownership and exchange company had just announced an increase to its quarterly dividend by 11.1 percent to $0.50 per share in March 2020. This dividend cut ends 11 consecutive years of dividend increases by the company formerly known as known as Wyndham Worldwide.

The next dividend is payable September 30, 2020 to WYND shareholders of record as of September 15, 2020. A new annual rate of $1.20 per share yields 4.2% at a stock price of $28.75. Earlier this year spin-off Wynham Hotels & Resorts (WH) had already announced a 75 percent dividend cut because of COVID-19.

Wyndham Destinations did pay a $0.50 per share quarterly dividend two times on March 31, 2020 and June 30, 2020. The lower 30 cents per share dividend will be paid to shareholders this September and results in annual dividend payment of approximately $102 million.

Because of this dividend cut the annual five year dividend growth rate for Wyndham Destinations will drop to 2.8 percent. The company formerly known as Wyndham Worldwide Corporation had been raising its dividend by at least double digits every year from 2010 to 2018, with a 9.8 percent dividend hike announced in 2019.

Wyndham Destinations, Inc., formerly Wyndham Worldwide Corporation, is the world's largest vacation ownership and exchange company. Wyndham Destinations offers everyday travelers the opportunity to own, exchange or rent their vacation experience while enjoying the quality, flexibility and value that Wyndham delivers. The company has a global presence in more than 100 countries. The company's vacation club brands include Club Wyndham, WorldMark by Wyndham, and Margaritaville Vacation Club by Wyndham. Wyndham's offers affiliated resorts through RCI, the world’s leader in vacation exchange. The company originally went public in 2006 and has paid a dividend to shareholders every year since 2007.