The Best Casino Stocks Now, Ranked In Order
Summary
- Casinos are an excellent business--as the saying goes, the house always wins.
- Casinos are enjoying rising demand thanks to the strong economy, and are highly profitable.
- Multiple casino stocks return cash to shareholders via dividends. This article provides an industry overview.
As the saying goes, the house always wins. Casinos operate strong business models, as casinos earn a virtually guaranteed profit from the sum of the bets they receive.
The relatively attractive economics of casinos make the industry worthy of a closer look. Investors may be particularly intrigued by the earnings growth and dividends of the major casino stocks.
The 4 major publicly-traded casino stocks all pay dividends to shareholders. You can find them on our list of list of 674 dividend-paying consumer cyclical stocks.
This is why we have analyzed the major casino stocks in the Sure Analysis Research Database, which ranks stocks based upon the combination of their dividend yield, earnings-per-share growth potential and valuation to compute expected total returns.
In this article, we will compare the expected 5-year total annual returns of the four major casino stocks.
Top Casino Stock #4: Melco Resorts (MLCO)
Melco Resorts owns and operates casino gaming and entertainment casino resort facilities in Asia. It generates 87% of its revenue in Macau and 13% in Philippines.
As Melco Resorts is the most leveraged to the gaming activity in Macau in this group of stocks, it was the most affected company during the downturn in the area between 2014 and 2016, when China executed an anti-corruption regulatory crackdown, which greatly reduced the gaming activity in Macau.
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