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 Nasdaq, Inc.

This article appears in: Personal Finance Investing Ideas
Referenced Stocks: IGT , LVS , WYNN

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