Three Dividend Stocks In Gaming Group In Early Bases

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Casino stockLas Vegas Sands ( LVS ) popped onto the Big Cap 20 list Tuesday, riding a strong move with the gaming industry group.

The Leisure-Gaming/Equipment group was No. 17 in Thursday's IBD, up from 83 six weeks ago.

Sands leads the group with a Composite Rating of 99.


Only two other stocks in the group have a Composite Rating of 90 or better and also pay a dividend.

None of the three stocks shows the three years of strong EPS growth associated with elite stocks. For example, Sands grew earnings 1,011% in 2010 and 102% in 2011 but growth fell to 6% last year.

The Street expects 25% EPS growth in 2013.

Sands paid a quarterly dividend of 25 cents a share last year and announced in November that it was raising the dividend to 35 cents a share in 2013. At the new rate, the annualized yield is 2.6%.

The company paid a $2.75 a share special dividend in December.

When the company began paying a dividend, CEO Sheldon Adelson said cash generation exceeded capital needs.

Sands recently cleared a 47.78 buy point in a cup-with-handle base. The stock is extended, but another possible buy point was at 54.03. The base is first stage, meaning it has less risk than late-stage bases.

International Game Technology ( IGT ) has a Composite Rating of 98. Annual EPS growth was in the 9% to 12% range in the past three years.

The Street expects 21% EPS growth in fiscal 2013 ending in September, which would be the fastest growth since 2004.

IGT increased its quarterly dividend from 6 cents a share to 7 cents in November. The yield is 1.7%.

The stock began rising off a low in August but has not formed a base. The gains could serve as the prior uptrend should a base appear. The base would be first stage.

Wynn Resorts ( WYNN ) grew EPS 712% and 164% in 2010-11 but EPS fell 4% last year. The Street sees 13% growth this year.

The quarterly dividend is $1 a share for an annualized yield of 3.3%. In November, Wynn paid a special dividend of $7.50 a share.

The stock is slightly extended from a 115.55 buy point in a first-stage base.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Personal Finance , Investing Ideas

Referenced Stocks: IGT , LVS , WYNN

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