Gaming Stocks Have Suddenly Become Dividend Plays

Melco Crown (NASDAQ: MPEL  ) is the latest gaming company to consider paying a dividend after its board of directors recommended paying both a special and regular dividend. If approved, it would join Wynn Resorts (NASDAQ: WYNN  ) and Las Vegas Sands (NYSE: LVS  ) as dividend-paying gaming stocks. 

This is a huge shift from just a few years ago, when companies were drowning in debt and used junk bonds just to expand operations. But Macau is such a cash machine that it can pay back investors with dividends and investors can rely on the income long-term. 

In the following video, Fool contributor Travis Hoium covers what Melco Crown's dividend might look like and why dividends change how investors should look at gaming stocks. 

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  • Report this Comment On March 09, 2014, at 9:44 AM, berg80 wrote:

    When outdated articles get published it makes you appear as though you aren't paying attention. That isn't helpful for someone who's credibility as a commentator on the gaming space is already of a dubious nature.

    http://finance.yahoo.com/news/melco-crown-entertainment-anno...

  • Report this Comment On March 11, 2014, at 10:56 AM, ObieJuan wrote:

    Thanks Trav! for your info and insight. To berg80

    it just got board approval at the end of Feb/14.Still a lot of T's to cross and I's to dot! Trav if you extrapolate the cost per share ie 44/mpel,88/lvs and 244/wynn doesn't that make mpel even look that more attractive and them committing to 30% on future div's??? Just wondering???

    Zombie on Fools!

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