International Game Technology (
), the world's biggest maker of slot machines, can't seem to give
away enough cash to shareholders.
The company recently hiked its quarterly dividend for the
third time this year, to 10 cents a share, payable Oct. 4 to
shareholders of record on Sept. 19. That brings the annual payout
to 40 cents a share, good for a yield of 2% at the current share
While that trails the S&P average of 2.50%, International
Game has offered superior capital gains so far this year, rising
34% vs. the S&P 500's 14% increase. For the past 12 months,
it's up 56%, also easily beating the S&P.
Currently, the stock is trading in a tight range as it shapes
a flat base with a possible 20.35 buy point. International Game
had previously formed a flat base, but it pulled back soon after
clearing a 17.59 buy point May 9. It triggered IBD's 8% sell rule
after sinking below the 50-day line in June.
International Game is in the highly rated
Leisure-Gaming/Equipment industry group, which includes Big Cap
20 stockLas Vegas Sands (
) and IBD 50 stockBally Technologies (
The company's Composite Rating is 95, eighth best in the
30-member group. Profits and pretax margins have been on the
rebound since the recession year of 2009. But earnings for the
current quarter are seen slipping 10% from a year earlier to 34
cents a share following strong growth ranging from 33% to 65%
over the past four quarters.
At the start of the year, International Game offered a
quarterly dividend of 7 cents a share before hiking it a penny
each time in March and June. The company said the latest payout
will mark the 42nd straight quarter that it has paid a dividend,
the longest streak in the gaming sector.