Boyd Gaming Boosting Dividend by Nearly 6%

Posted on: February 20, 2025, 07:00h. 

Last updated on: February 21, 2025, 09:13h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.
  • Boyd Gaming lifts quarterly dividend
  • Modest increase of a penny a share per quarter

Boyd Gaming (NYSE: BYD), one of the largest operators of casinos frequented by Las Vegas locals, announced Thursday that it’s raising its quarterly dividend by 5.9% to 18 cents a share from 17 cents.

Boyd dividend
Boyd Gaming’s Fremont Hotel and Casino in downtown Las Vegas. The operator raised its dividend for a third consecutive year. (Image: Vegas Means Business)

The new payout equals 72 cents per share annually and pushes the operator’s dividend yield closer to 1% based on Thursday’s closing price. Boyd shares yielded 0.86% as of the close of US markets today. Las Vegas-based Boyd’s board of directors approved the raise.

The dividend is payable April 15, 2025, to shareholders of record at the close of business on March 17, 2025,” said the gaming company in a statement.

Boyd runs 10 gaming venues in its home market, including Aliante, California, Cannery, Fremont, Gold Coast, Jokers Wild, Main Street Station, Sam’s Town, Suncoast, and The Orleans. It also operates regional casinos in Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania.

Boyd Quietly Becoming Dividend Growth Story

During the early days of the coronavirus pandemic, Boyd was the first casino operator to suspend its dividend as an avenue for conserving cash. Since restoring its cash distribution, Boyd has quietly become a solid dividend growth story.

Upon restoring its dividend in 2022, the Aliante operator has increased it three times, including Thursday’s announcement. Each of those three instances occurred in the month of February. Shares of Boyd are up 9.48% year to date and 25.33% over the past month, easily making it one of the best-performing gaming equities over those spans.

The prevailing wisdom on Wall Street is that, relative to competitors, Boyd has one of the sturdier balance sheets and that’s supportive of dividends and share buybacks.

“With a pristine balance sheet (for a gaming operator we mean), a management that is willing to aggressively return cash to shareholders, and now some built-in growth, we believe the sentiment on BYD could continue more bullish,” said Stifel analyst Steven Wieczynski in a recent note.

Boyd Best of Breed Among Regional Casino Stocks

Over the past couple of years, the regional casino equity thesis was pinched by consumers dialing back spending amid elevated inflation and high interest rates, but Boyd fought through those headwinds last year. That resilience isn’t lost on Wall Street.

Shares of BYD continue to outperform their regional gaming peer group by a wide margin. Why is that? Well, we believe it’s the combination of a flight to quality, best-in-class balance sheet, growth opportunities and essentially a call option on digital,” adds Wieczynski. “If investors need regional gaming exposure, BYD remains the most compelling name to own, in our opinion.”

The digital call option referenced by the analyst includes Boyd’s 5% stake in FanDuel and its own growing iGaming unit.