UBS Downgrades Wynn Resorts to “Neutral” (WYNN)

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On Friday analysts at UBS downgraded casino operator Wynn Resorts, Limited ( WYNN ) as it sees no major catalysts for growth in the company and challenges ahead.

The analysts downgraded WYNN from "Buy" to "Neutral" with a price target of $118. The new target is a +3.3% upside from Thursday's closing price of $114.22.

Wynn Resorts shares were down $1.66, or -1.45%, in premarket trading on Friday. The stock is up +3.38% year-to-date.

Wynn Resorts is an owner and operator of casino hotel resorts in Las Vegas, Nevada and Macau. In the most recent quarter, WYNN reported a profit of $112 million on revenue of about $1.3 billion.

Wynn Resorts Dividend in Focus

Wynn has paid out a dividend of $2.00 per share over the past 12 months , plus a special dividend of $7.50 per share in November of 2012. This dividend payout represents a 1.75% dividend yield based on Thursday's closing price of $114.22. The company has announced that it plans to double its quarterly dividend distribution to $1.00 per share beginning in 2013. Wynn's last dividend was a regular 50 cent per share distribution and the $7.50 per share special dividend that was paid on November 20, 2012 (view the Ex-Dividend Tool for information on all upcoming ex-dividend dates).

Recent Wynn dividends include:

  • June 4, 2012: $0.50
  • August 14, 2012: $0.50
  • November 20, 2012: $0.50
  • November 20, 2012: $7.50 (Special)

Wynn has been paying the same dividend per quarter since April of 2011. The company is only a decade old and has a relatively short and inconsistent dividend payout history. In 2011 Wynn's dividend payout ratio was 30.4%.

Wynn Resorts vs. the Competition has identified a few stocks that are related to Wynn Resorts. Keep in mind that there are not many publicly owned direct competitors to Wynn Resorts. A few related companies include Las Vegas Sands ( LVS ), Ameristar Casino ( ASCA ), and Royal Caribbean Cruises, Ltd. ( RCL ). All of these companies have a dividend yield around 2%.

Ticker Company Yield DARS
WYNN Wynn Resorts 1.75% 3.3
LVS Las Vegas Sands 2.18% 3.2
ASCA Ameristar Casino 2.41% 3.2
RCL Royal Caribbean Cruises, Ltd. 1.40% 3.2

Use the screener to see all dividend-paying consumer goods stocks, or run other custom searches for dividend-paying stocks.

Wynn Resorts, Limited ( WYNN ) is not recommended at this time, holding a DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

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.

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This article appears in: Investing , Stocks

Referenced Stocks: WYNN

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