Las Vegas Sands (NYSE:LVS) Tops Gaming Industry


Most companies based in Las Vegas that trade publicly don’t pay dividends. There are, however, some exception, like Las Vegas Sands (NYSE:LVS) and Wynn Resorts (NASDAQ:WYNN).

These two companies for the severe competitive belt, due to which their dividend yields are quite close to each other’s.  Currently, Wynn Resorts (NASDAQ:WYNN) is at 3.7%, whereas Las Vegas Sands (NYSE:LVS) is not far behind, at 3.4%.

However, their methods of dividend pay are quite different from each other’s. Las Vegas Sands (NYSE:LVS) has a more traditional method of payments, where it pays its shareholders with a fixed amount in each quarter. This figure has, so far increased from its previous value at $0.25 per share in 2012, to $0.35 in 2013, and then $0.50 in the current fiscal year. For 2015, it is being projected at $0.65, which is quite a significant increase. There has been a singular event, where the firm declared a special dividend worth $2.75, towards the later part of 2012.

On the other hand, Wynn Resorts (NASDAQ:WYNN) has a different method that is dependent on specials. These differing amounts are issued on a periodic basis at the end of each fiscal year. However, for the rest of the three quarters, a steady amount is paid out.

Wynn Resorts (NASDAQ:WYNN) believes in returning higher payouts. The firm has paid a hefty dividend, amounting at $690 million, in nine month period that ended on Sept. 30. It is noteworthy that special dividend is not included in this period.

In the previous fiscal year, the proportions were much more balanced at $632 million and $957 million. Not much is revealed about the firm’s dividend policy, hence it is harder to comment on that prospect. However, analysts feel that investors should be concerned about such varying figures. This is due to the fact there is a lack of set standards in terms of fundamentals, which creates hurdles in the high dividend flow.

However, Las Vegas Sands (NYSE:LVS) has a set of more consistent principles in this regard. The free-cash for nine-month period totaled at $2.8 billion, for this year. The paid dividend has summed at nearly $2 billion. This is much improvement from the last year figures noted at $2.6 billion and $1.3 billion.

Las Vegas Sands (NYSE:LVS)’s strength in Asia brings in 86% in net revenue in operations. Off these, major contributions are drawn from the Macau outlets in China. Another major outlet that helps draw 21% in the last quarter, comes from a resort in Singapore that houses 2,600 rooms.

As a result of an anti-corruption crackdown at Macau’s locations has had a temporary slow business of late, which has had a negative impact on fundamentals. But it will prove fruitful in the long run.

Wynn Resorts (NASDAQ:WYNN)’s representation in Macau has come quite late, and there are no locations in Singapore. The firm is constructing a 1,700 room site in Macau, which will open in 2016. Another of its sites in Boston is also a very promising prospect.

Las Vegas Sands (NYSE:LVS) figures have placed the firm in a lead against its peer.