Boyd Gaming declares quarterly cash dividend payable October 15

Casino operator Boyd Gaming Corporation announced Monday that its Board of Directors has declared a quarterly cash dividend of $0.15 per share, payable October 15, 2022, to shareholders of record at the close of business on September 30, 2022. This represents a $0.60 annualized dividend and a dividend yield of 1.16%.

Boyd Gaming has a payout ratio of 11.3% indicating that its dividend is sufficiently covered by earnings, according to analysts. Research analysts expect Boyd Gaming to earn $5.20 per share next year, which means the company should continue to be able to cover its $0.60 annual dividend with an expected future payout ratio of 11.5%.

Boyd opened at $51.85 on Friday. The business has a fifty-two-week low of $47.66 and a fifty-two-week high of $72.72. The company last posted its earnings results on July 26, when the operator reported $1.48 earnings per share for the quarter, beating the consensus estimate of $1.38 by $0.10. 

The news comes right after the company in tandem with FanDuel opened the FanDuel Sportsbook at the Kansas Star Casino in Mulvane. The ribbon-cutting ceremony, held on September 8, featured a ceremonial first bet placed by Super Bowl champion and former Kansas State Wildcat Jordy Nelson.

The sportsbook’s debut came the same day Kansas officially launched its sports betting market, and a week after sports gaming started with a “soft launch” phase on September 1. The FanDuel Sportsbook also opened the same day as the NFL season kick-off. 

This alliance is currently spreading widely in the US, with Boyd-run Fremont Hotel & Casino having started a process to be rebranded under FanDuel, a move that was recently approved by the Nevada Gaming Control Board. Having 5% ownership of the sportsbook operator, Boyd will continue behind the facility, and FanDuel will not supply any technology.

The partnership between FanDuel and Boyd is expected to launch at some yet unspecified point by the end of the year, with the Fremont sportsbook set to adopt FanDuel branding. Under the agreement, FanDuel will provide advice on odds and risk management through Boyd’s existing IGT sports betting system.

The upcoming 2,300-square-foot sportsbook at Fremont is set to feature seating for 76 people, with wagering to be provided by Boyd at four windows and seven self-service kiosks. The amenity will also contain FanDuel signage and other branding insignias, plus a high-definition television viewing wall. 

Back in July, the company reported revenues of $894.5 million for the second quarter of the year, up slightly from $893.6 million in the same period last year. The modest 0.1% increase came despite a 6% decline in its gaming operations, which were down by about $40 million to $684.9 million, compared to $727.5 million in Q2 2021. Encouraged by the positive results, the company now targets to expand its US retail and digital footprint further.

The company reported a net income of $146.8 million -or $1.33 per share- for the quarter, up from $113.7 million for the year-ago period. Total Adjusted EBITDAR was $353.9 million, and Adjusted Earnings were at $163.5 million. Boyd was also able to improve company-wide operating margins from the first quarter, despite inflationary pressures in the period. Margins after corporate expense were 39.6%, exceeding 39% for the fifth straight quarter.