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The Kentucky Derby, considered to be the most famous horse race in the United States, will be held this Saturday in Louisville, Kentucky. It is the first segment of the Triple Crown of Thoroughbred Racing and will be followed by the Preakness Stakes and the Belmont Stakes.

The Kentucky Derby is hosted by Churchill Downs Inc. (NASDAQ:CHDN), the holding company of the Churchill Downs Racetrack that originally opened in 1875. It also owns Arlington Park, the Calder Race Course, the Fair Grounds Race Course, and the Trackside Off-Track-Betting Facilities. The stock trades at 18 times forward earnings, and pays a yield of 1.2%. As a matter of fact, WallStreetNewsNetwork.com turned up a list of a dozen stocks in the horse racing industry, and half of them pay dividends.

Dover Downs Gaming & Entertainment Inc. (NYSE:DDE) owns Dover Downs Raceway, a harness racing track with pari-mutuel wagering. The company has a price to earnings ratio of 16.9 and pays a generous yield of 3.4%. Revenues were up 4.6% for the latest quarter, however, earnings dropped over 72%.

Penn National Gaming Inc. (NASDAQ:PENN) owns racetracks and off-track wagering facilities in Colorado, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, New Jersey, Ohio, Pennsylvania, West Virginia, and Ontario. The stock has a forward PE of 21.1 but does not pay a dividend.

Go here for a free list of stocks involved in the horse racing industry, which you can download, sort and update. By the way, if you want a free horse race handicapping program, check out the one at horsetip.com.

Disclosure: Author did not own any of the above at the time the article was written.

Source: In Honor of Saturday's Kentucky Derby - 3 Horse Racing Stocks