Yahoo Finance Wynn Resorts Ltd's Dividend Analysis
Exploring the Sustainability and Growth of Wynn Resorts Ltd's Dividends
Wynn Resorts Ltd (NASDAQ:WYNN) recently announced a dividend of $0.25 per share, payable on 2024-05-31, with the ex-dividend date set for 2024-05-17. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Wynn Resorts Ltd's dividend performance and assess its sustainability.
What Does Wynn Resorts Ltd Do?
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Wynn Resorts operates luxury casinos and resorts. The company was founded in 2002 by Steve Wynn, the former CEO. The company operates four megaresorts: Wynn Macau and Encore in Macao and Wynn Las Vegas and Encore in Las Vegas. Cotai Palace opened in August 2016 in Macao, and Encore Boston Harbor in Massachusetts opened June 2019. We expect the company to continue to build nongaming attractions in Macao over the next few years. We model Wynn's managed integrated resort in the United Arab Emirates to open in 2027. The company also operates Wynn Interactive, a digital sports betting and iGaming platform. The company received 76% and 24% of its 2019 prepandemic EBITDA from Macao and the US, respectively.
A Glimpse at Wynn Resorts Ltd's Dividend History
Wynn Resorts Ltd has maintained a consistent dividend payment record since 2023. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Wynn Resorts Ltd's Dividend Yield and Growth
As of today, Wynn Resorts Ltd currently has a 12-month trailing dividend yield of 1.02% and a 12-month forward dividend yield of 1.02%. This suggests an expectation of same dividend payments over the next 12 months. Over the past three years, Wynn Resorts Ltd's annual dividend growth rate was -9.10%. Based on Wynn Resorts Ltd's dividend yield and five-year growth rate, the 5-year yield on cost of Wynn Resorts Ltd stock as of today is approximately 1.02%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2024-03-31, Wynn Resorts Ltd's dividend payout ratio is 0.22. Wynn Resorts Ltd's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Wynn Resorts Ltd's profitability 7 out of 10 as of 2024-03-31, suggesting good profitability prospects. The company has reported net profit in 7 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Wynn Resorts Ltd's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Wynn Resorts Ltd's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Wynn Resorts Ltd's revenue has increased by approximately 43.40% per year on average, a rate that outperforms approximately 83.14% of global competitors.
Concluding Thoughts on Wynn Resorts Ltd's Dividend Strategy
With a stable dividend history and a promising outlook in growth and profitability, Wynn Resorts Ltd appears well-positioned to maintain its dividend payments. The company's strategic operations and expansions into new markets such as the UAE could further bolster its financial stability and attractiveness to investors. As we continue to monitor Wynn Resorts Ltd's performance, investors might consider whether this stock could serve as a sustainable income source in their portfolios. GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
