Boyd Boosts Quarterly Dividend by Nearly Seven Percent

Posted on: February 14, 2023, 05:56h. 

Last updated on: February 15, 2023, 11:45h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Boyd Gaming (NYSE: BYD) announced today that it is increasing its quarterly dividend to 16 cents a share from 15 cents.

Boyd dividend
Boyd Gaming’s Fremont Hotel and Casino in downtown Las Vegas. The company announced it is raising its quarterly dividend. (Image: Vegas Means Business)

The Las Vegas-based casino operator’s board of directors approved the raise, which works out to 6.66%. At the close of trading today, the stock sported a dividend yield of 0.89%, implying room for growth.

The dividend is payable April 15, 2023, to shareholders of record at the close of business on March 15, 2023,” according to a statement issued by the Orleans operator.

Boyd runs 10 gaming venues in its home market, including Aliante, California, Cannery, Fremont, Gold Coast, Jokers Wild, Main Street Station, Sam’s Town, Suncoast, and The Orleans. It also operates regional casinos in Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio and Pennsylvania.

Boyd Dividend Rebounding from COVID-19 Woes

Like many casino operators, Boyd’s dividend was suspended following the onset of the coronavirus pandemic as the company sought to conserve cash.

In March 2020, the Aliante operator suspended its dividend, which was seven cents a share per quarter at that time. However, to Boyd’s credit, it was the first in the industry to reinstate its payout, doing so about a year ago. It’s also one of a scant number of gaming firms to boost its dividend in the post-pandemic landscape.

Rival Red Rock Resorts (NASDAQ:RRR) has since followed suit. Last week, Monarch Casino & Resort (NASDAQ: MCRI) announced a one-time special dividend of $5 per share along with a new quarterly distribution of 30 cents.

Conversely, the dividend situation on the Las Vegas Strip is bleak as MGM Resorts International (NYSE: MGM) pays a mere penny per share annually. Caesars Entertainment (NASDAQ: CZR) and Wynn Resorts (NASDAQ: WYNN), among others, aren’t dividend-paying entities.

Boyd Has Resources to Support Dividend Growth

In addition to its dividend, Boyd is returning capital to investors through share buybacks. Last year, the operator devoted $600 million to shareholder rewards, which included repurchasing $107 million of its own stock in the fourth quarter. The company has $239 million left on a previously announced buyback plan.

Analysts believe Boyd can support the trifecta of shareholder yield — growing its payout, repurchasing stock and reducing debt.

Additionally, the company has levers to pull should it need to raise. Those include a 5% stake in FanDuel and a valuable portfolio of Las Vegas real estate. However, the company isn’t rushing to part with its Sin City land, nor has it publicly said what its plans are for its increasingly valuable stake FanDuel interest.