Bernstein Bullish on Las Vegas Sands as Q2 Casino Stock Idea

April 18, 2022 China Earnings & Filings

Still, some analysts remain bullish on the largest Macau concessionaire, saying LVS and its Sands China unit are poised to rebound. In a new note to clients, analysts at research firm Bernstein anoint Las Vegas Sands and Sands China as their preferred casino stock ideas for the second quarter, rating each “outperform.” The analysts also offer a forecast on when the gaming company could restore its dividend.

With strong cash flow and limited CAPEX commitment over the next few years we expect Sands China to de-lever and return to paying dividends by 2024,” notes Bernstein.

Once the biggest dividend payer among US-based gaming companies, Sands suspended its payout two years ago to conserve cash at the start of the pandemic. Following a new agreement with creditors reached last year, it was believed the gaming company could not and would not restart the payout until late 2022 at the earliest.

LVS long had one of the richest payouts in the gaming industry, and one of the more enviable track records of payout growth. When the dividend was suspended, it was $3.16 per share annually and yielded 6.88%. It was a tough decision for the late Sheldon Adelson, as the former LVS chairman and chief executive officer was known for saying, “Yay, dividends!”