Assessing the Dividend Profile of Boyd Gaming Corp
Boyd Gaming Corp (BYD, Financial) recently announced a dividend of $0.16 per share, payable on 2024-01-15, with the ex-dividend date set for 2023-12-21. 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 Boyd Gaming Corp's dividend performance and assess its sustainability.
What Does Boyd Gaming Corp Do?
Boyd Gaming Corp is a multi-jurisdictional gaming company. The company operates wholly owned gaming entertainment properties (casino space, slot machines, table games, and hotel rooms) in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania. Its business segments are separated by geographical regions: Las Vegas Locals; Downtown Las Vegas; and Midwest and South. Midwest and South holds the largest number of entertainment properties, and it generates most sales for the company. Boyd Gaming Corp generates most of its revenue from its gaming operations.
A Glimpse at Boyd Gaming Corp's Dividend History
Boyd Gaming Corp has maintained a consistent dividend payment record since 2022. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Boyd Gaming Corp's Dividend Yield and Growth
As of today, Boyd Gaming Corp currently has a 12-month trailing dividend yield of 1.01% and a 12-month forward dividend yield of 1.03%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, Boyd Gaming Corp's annual dividend growth rate was 30.50%. Based on Boyd Gaming Corp's dividend yield and five-year growth rate, the 5-year yield on cost of Boyd Gaming Corp stock as of today is approximately 1.01%.
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 2023-09-30, Boyd Gaming Corp's dividend payout ratio is 0.09. Boyd Gaming Corp's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Boyd Gaming Corp's profitability 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 7 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Boyd Gaming Corp's growth rank of 8 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and Boyd Gaming Corp's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Boyd Gaming Corp's revenue has increased by approximately 3.80% per year on average, a rate that outperforms approximately 61.26% of global competitors. The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Boyd Gaming Corp's earnings increased by approximately 57.20% per year on average, a rate that outperforms approximately 89.98% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 26.20%, which outperforms approximately 77.37% of global competitors.
Next Steps
In conclusion, Boyd Gaming Corp's upcoming dividend payment, consistent dividend history, and promising growth rates make it an intriguing option for value investors. The company's low payout ratio coupled with a high profitability rank indicates a strong foundation for sustaining its dividend payments. Growth metrics further reinforce the company's potential for future expansion and continued dividend increases. Given these factors, Boyd Gaming Corp appears to be a compelling choice for investors seeking a combination of income and growth. 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.
