Posted on: February 14, 2023, 05:56h.
Final up to date on: February 14, 2023, 05:56h.
Boyd Gaming (NYSE: BYD) introduced at this time that it’s rising its quarterly dividend to 16 cents a share from 15 cents.
The Las Vegas-based on line casino operator’s board of administrators accredited the increase, which works out to six.66%. On the shut of buying and selling at this time, the inventory sported a dividend yield of 0.89%, implying room for progress.
The dividend is payable April 15, 2023, to shareholders of file on the shut of enterprise on March 15, 2023,” in line with a press release issued by the Orleans operator.
Boyd runs 10 gaming venues in its dwelling market, together with Aliante, California, Cannery, Fremont, Gold Coast, Jokers Wild, Essential Road Station, Sam’s City, Suncoast, and The Orleans. It additionally operates regional casinos in Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio and Pennsylvania.
Boyd Dividend Rebounding from COVID-19 Woes
Like many on line casino operators, Boyd’s dividend was suspended following the onset of the coronavirus pandemic as the corporate sought to preserve money.
In March 2020, the Aliante operator suspended its dividend, which at the moment was seven cents a share per quarter. Nonetheless, to Boyd’s credit score, it was the primary within the business to reinstate its payout, doing so a couple of yr in the past. It’s additionally one in all a scant variety of gaming corporations to spice up its dividend in post-pandemic panorama.
Rival Purple Rock Resorts (NASDAQ:RRR) has since adopted go well with and final week, Monarch On line casino & Resort (NASDAQ: MCRI) introduced a one-time particular dividend of $5 per share together with a brand new quarterly distribution of 30 cents.
Conversely, the dividend state of affairs on the Las Vegas Strip is bleak as MGM Resorts Worldwide (NYSE: MGM) pays a mere penny per share yearly whereas Caesars Leisure (NASDAQ: CZR) and Wynn Resorts (NASDAQ: WYNN), amongst others, aren’t dividend-paying entities.
Boyd Has Sources to Help Dividend Progress
Along with its dividend, Boyd is returning capital to traders in type of share buybacks. Final yr, the operator devoted $600 million to shareholder rewards, which included repurchasing $107 million of its personal inventory within the fourth quarter. The corporate has $239 million left on a beforehand introduced buyback plan.
Analysts consider Boyd has the power to help the trifecta of shareholder yield — rising its payout, repurchasing inventory and lowering debt.
Moreover, the corporate has levers to drag ought to it want to boost. These embrace a 5% stake in FanDuel and a priceless portfolio of Las Vegas actual property. Nonetheless, the corporate isn’t dashing to half with its Sin Metropolis land nor has it publicly mentioned what its plans are for its more and more priceless stake FanDuel curiosity.