The casino industry has been steadily growing for decades, and naturally, many want to jump that gravy train. Sure, the quickest way to earn big from casinos is to hope that lady luck leads you toward a multi-million dollar jackpot, but counting on the element of chance isn’t always the wisest way to go.
Instead, many opt to play it safe by investing in casino stocks. As it turns out, there are plenty of lucrative options, but only a few pay annual dividends.
We are going to give you a short guide on dividend-paying casino stocks that are worth checking out and explain how it all works.
What Are Dividends?
In case you have no experience investing in stocks, here’s an overview of what dividends are.
When someone buys stocks, they are technically buying a share of the company. Standard stocks have their price, which goes up and down based on the success of a business. If the company grows, the price of each stock increases and owners can choose to sell them at a higher price to make a profit.
However, some corporations provide another source of income for stockholders — by paying out dividends.
At the end of every year, stock owners receive a share of the profits, usually as a small percentage of the stock price. For example, if a dividend is 1% and the cost of a stock is $100, you’ll receive $1 for every $100 you own in stocks.
Casino Companies That Pay Dividends to Stock Owners
Let’s check out the organizations that pay dividends on their stocks. Bear in mind that market fluctuations are frequent, so anything can change by the time you decide to buy stocks from a casino company. What may stay the same, however, is that the following companies pay dividends.
Make sure you do additional research to learn more about the details of each option before making a decision. Consider our guide as a basic introduction to what’s out there in the world of casino stock investments.
MGM Resorts International
MGM Resorts International is one of the leading US-based hospitality and entertainment companies, with casino resorts in:
Some of its most popular land-based properties are Bellagio, MGM Grand, Park MGM, and Mandalay Bay.
The estimated annual dividend is around 0.03%, with a single stock currently trading for about $30.
Churchill Downs, Inc
Churchill Downs Incorporated is the most profitable track owner in the entire horse racing industry, owning 15 properties at the moment, many of which also feature successful land-based casinos.
Listed as CHDN on NASDAQ, the company offers 0.34% dividends, with the current value of a share being $198.
Boyd Gaming Corp
Boyd Gaming Corporation is a Nevada-based gaming and hospitality company founded by Sam Boyd. As of 2022, the corporation holds 28 properties, with more than 1.6 million square feet of combined casino space.
Boyd Gaming trades as BYD, and the present price of a single stock is $51.88. The company pays a 1.16% annual dividend.
Red Rock Resorts Inc
Red Rock Resorts is the parent company of Station Casinos, LLC, a Las Vegas-based hotel and casino company. It currently owns and operates 15 casinos across the US.
Red Rock is listed as RRR and pays dividends of $2.64% to stock owners. However, its overall market cap is much lower compared to other companies. For instance, MGM’s market cap is around $12 billion, as opposed to RRR, at $4 billion.
International Game Technology PLC
International Game Technology PLC (IGT) is a multi-national gaming company that manufactures slot machines and develops other casino-related technologies.
IGT holds a listing on the New York Stock Exchange, and its share price is $18.30 at the moment, while its annual dividend yield is 4.37%.
Canterbury Park Holding Corp
Listed as CPHC at NASDAQ, Canterbury Park runs a horse racing track in Shakopee, MN. In addition, visitors can enjoy round-the-clock casino entertainment and get a chance to bet on out-of-state race tracks via simulcast betting.
Canterbury Park is a much smaller organization compared to the previous options, as its current market cap is $113.14 million. Shareholders have a chance to get 1.17% annual dividends, with the current stock price being $23.95.
Final Thoughts
To sum up, investing in casino stocks may prove profitable, especially if you want to put your money in shares that pay dividends. Hopefully, we’ve assisted you at least a bit and helped you get started. We suggest doing further research and avoiding putting all your eggs in one basket!
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