In this article, we discuss 10 casino stocks that pay dividends. You can skip our detailed analysis of the casino industry and dividend stocks, and go directly to read 5 Casino stocks that Pay Dividends.
Casino stocks are part of the broader leisure and hospitality industry and are influenced by various factors, including the performance of the overall economy, consumer discretionary spending, and regulatory changes in the gambling industry.
The casino industry suffered huge losses in 2020 in the face of the pandemic as the revenue of U.S. casinos dropped by a substantial 31.3%, falling to $30.0 billion. This was the lowest level of revenue seen since 2003, as reported by the American Gaming Association (AGA). However, the industry is showing signs of a strong recovery as people are returning to casinos for gambling. According to a report by AGA, Americans set a new record for gambling in 2022 through November. Casinos and mobile gaming apps in the US made an impressive $54.93 billion in revenue during the first 11 months of the year.
The pandemic's challenges forced the casino and gaming industry to adjust to a new way of doing things. Many casinos accelerated their digital transformation efforts, including the adoption of online gambling platforms and the development of mobile apps for casino games and sports betting. This was in response to the increased demand for online gambling during lockdowns and social distancing measures. This adaptation has also spurred significant growth in the industry in the years following the pandemic. According to a report by Research and Markets, the global gambling market is expected to grow at a CAGR of 11.3% through 2027, reaching $765.89 billion. The report further indicated that the market will grow at a rapid pace because of the legalization of gambling, increasing social media, and the rise in the use of social media.
An increasing number of visitors to Macau has caused analysts to predict higher earnings for casinos, even though the overall Chinese market isn't showing strong growth. In July, over 2.7 million visitors came to Macau, which is similar to the numbers before the pandemic, according to a report by Bloomberg. The report further referred to Morgan Stanley’s data and mentioned that the numbers for the latter part of September are showing a good recovery, and bookings for October are looking promising. They expect that during the Golden Week holiday period, the daily gross gaming revenue will reach 750 million patacas, which is equivalent to $93 million.
Casino stocks are becoming more popular among investors this year because they are expected to grow, and analysts have presented a positive outlook on the sector. Some of the best casino stocks such as MGM Resorts International (NYSE:MGM), Caesars Entertainment (NASDAQ:CZR), and Wynn Resorts, Limited (NASDAQ:WYNN) have delivered positive returns to shareholders this year so far. In this article, we will further discuss casino stocks that pay dividends to shareholders.
10 Casino Stocks that Pay Dividends
Our Methodology:
For this list, we scanned Insider Monkey's database of Q2 2023 and selected companies that are involved in the casino and gambling industry. These companies own and operate casinos, resorts, and other gaming and entertainment facilities. From the resultant list, we picked casino stocks that pay dividends to shareholders and ranked them in ascending order of the number of hedge funds having stakes in them as of Q2 2023.
10. Canterbury Park Holding Corporation (NASDAQ:CPHC)
Number of Hedge Fund Holders: 1
Canterbury Park Holding Corporation (NASDAQ:CPHC) is a Minnesota-based company that operates in the entertainment and gaming industry. The company also operates a card room and casino gaming facility as part of its business operations. It is among the best casino stocks on our list.
In the second quarter of 2023, Canterbury Park Holding Corporation (NASDAQ:CPHC) reported revenue of over $16.3 million and its net income for the quarter came in at roughly $5.3 million. Its casino revenue stood at $10.3 million, up from $9.9 million in the same period last year.
Canterbury Park Holding Corporation (NASDAQ:CPHC) suspended its dividends in the face of the pandemic of 2020 and reinstated its payouts in January 2022. The company currently pays a quarterly dividend of $0.07 per share and has a dividend yield of 1.38%, as of September 27. MGM Resorts International (NYSE:MGM), Caesars Entertainment (NASDAQ:CZR), and Wynn Resorts, Limited (NASDAQ:WYNN) are some other casino stocks that investors can add to their portfolios.
At the end of Q2 2023, GAMCO Investors was the only stakeholder of Canterbury Park Holding Corporation (NASDAQ:CPHC), owning stakes worth over $8.8 million.
Bluegreen Vacations Holding Corporation (NYSE:BVH) specializes in vacation ownership and resort management. Though the company does not have direct involvement in the casino industry, the company owns and operates a portfolio of vacation resorts located in various popular destinations across the US.
Bluegreen Vacations Holding Corporation (NYSE:BVH) started paying dividends in July 2022 and has raised its dividends once since then. The company currently pays a quarterly dividend of $0.20 per share and has a dividend yield of 2.23%, as of September 27. It is among the best casino stocks on our list. The stock delivered a 41.8% return to shareholders since the start of 2023.
In the second quarter of 2023, Bluegreen Vacations Holding Corporation (NYSE:BVH) posted revenue of $260.6 million, which showed a 10.6% growth from the prior year period. The company ended the quarter with over $178.7 million available in cash and cash equivalents.
As of the close of Q2 2023, 11 hedge funds in Insider Monkey's database reported having stakes in Bluegreen Vacations Holding Corporation (NYSE:BVH), which remained unchanged from the previous quarter. The collective value of these stakes is over $27.2 million.
Four Corners Property Trust, Inc. (NYSE:FCPT) is an American real estate investment trust company that specializes in owning and leasing restaurant and retail properties. The company generated roughly $61 million in revenues in the second quarter of 2023, which saw a 9.5% hike from the same period last year. At the end of the quarter, it had over $11 million available in cash and cash equivalents.
Four Corners Property Trust, Inc. (NYSE:FCPT), one of the best casino stocks on our list, currently pays a quarterly dividend of $0.34 per share. The company has been raising its dividends consistently since 2016. The stock has a dividend yield of 6.15%, as of September 27.
At the end of Q2 2023, 12 hedge funds tracked by Insider Monkey reported owning stakes in Four Corners Property Trust, Inc. (NYSE:FCPT), up from 11 in the previous quarter. The consolidated value of these stakes is roughly $72 million.
Red Rock Resorts, Inc. (NASDAQ:RRR) is a Nevada-based holding company that is primarily engaged in the gaming and entertainment industry. The company owns and operates a portfolio of casinos and resorts, which includes both local and destination casinos in the Las Vegas area.
On September 13, Red Rock Resorts, Inc. (NASDAQ:RRR) declared a quarterly dividend of $0.25 per share, which was in line with its previous dividend. The company also has a history of paying special dividends to shareholders, which makes it one of the best casino stocks on our list. As of September 27, the stock has a dividend yield of 2.48%.
In the second quarter of 2023, Red Rock Resorts, Inc. (NASDAQ:RRR) posted revenue of $416 million, which fell slightly by 1.4% from the same period last year. The company ended the quarter with approximately $101 million available in cash and cash equivalents. It also returned $27.1 million to shareholders through dividends.
As of the close of Q2 2023, 18 hedge funds in Insider Monkey's database held stakes in Red Rock Resorts, Inc. (NASDAQ:RRR), compared with 19 in the previous quarter. The overall value of these stakes is roughly $175 million. With over 4.7 million shares, Diamond Hill Capital was the company's leading stakeholder in Q2.
Monarch Casino & Resort, Inc. (NASDAQ:MCRI) is an American company in the gaming and hospitality industry, primarily focused on casino operations and resort development. The company operates casino properties that offer various gaming options to visitors.
In the second quarter of 2023, Monarch Casino & Resort, Inc. (NASDAQ:MCRI) reported revenue of $123.6 million, which showed a 7.3% growth from the prior year period. It had over $35 million available in cash and cash equivalents. Its casino revenue stands at $68.8 million, up from $63.8 million in the same period last year.
On August 30, Monarch Casino & Resort, Inc. (NASDAQ:MCRI) declared a quarterly dividend of $0.30 per share. The stock has a dividend yield of 1.92%, as of September 27. In the past 12 months, the stock delivered an 8.2% return to shareholders. In addition to MCRI, MGM Resorts International (NYSE:MGM), Caesars Entertainment (NASDAQ:CZR), and Wynn Resorts, Limited (NASDAQ:WYNN) are some other casino stocks to consider.
The number of hedge funds tracked by Insider Monkey owning stakes in Monarch Casino & Resort, Inc. (NASDAQ:MCRI) stood at 19, the same as in the previous quarter. The collective value of these stakes is over $53.6 million.
