This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Las Vegas Sands: Unlocking Value Could Be a REIT Idea

NEW YORK ( TheStreet) -- On Dec. 18 Las Vegas Sands (LVS) will be just another domino in a long-line of companies paying a special dividend this year. Sands and other cash rich companies are lining up to take advantage of the current tax rates and likely higher rates on dividend income that could kick in automatically on Jan. 1 (with the expiration of the Bush tax cuts).

Triggered by large casino profits, as well as interests in mall and hotel income, Las Vegas Sands plans to reward shareholders by paying out a $2.75 a share special dividend, in addition to the annual dividend of $1.40 a share. That combined dividend payout amounts to an annual dividend yield in excess of 6%.

Las Vegas Sands is a newcomer to paying dividends as the company squeezed out a token last year and the yield hovers around 2% today -- excluding the special dividend.

Maybe there is more to this? Perhaps there could be a compelling opportunity for investors to benefit for Las Vegas Sands and its repeatable income model?

Las Vegas Sand: A Wide-Moat Gamer

Las Vegas Sands, a Fortune 500 company, is the preeminent operator and developer of integrated casino resorts. LVS resorts are exceptionally high-quality mixed-use properties that feature a combination of gaming, lodging, entertainment, and retail facilities. LVS focuses its gaming business on the higher margin mass market, owns retail catering to the high-end luxury market and creates a lavish hotel experience for guests.

As with many companies, the history of LVS begins with the vision of its founding chairman and CEO Sheldon G. Adelson (his bank account will soar by another $1.2 billion with the payout of the special dividend.)

The secret of LVS and Adelson's success was his focused hotel efforts and specifically on courting the convention and tradeshow industry. At the time, when other hotels were focusing on gambling, his approach was unorthodox, even mocked.

Adelson was also among the first to foresee the financial potential of Asia. Before his American competitors, he located his company nearer to the Asian market. Las Vegas Sands opened the Sands Macao in 2004. Macao, the former Portuguese colony turned over to China in late 1999, is the only place on mainland China where casino gambling is legal.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
LVS $56.70 0.00%
AAPL $130.42 0.00%
FB $80.41 0.00%
GOOG $555.48 0.00%
TSLA $207.19 0.00%

Markets

DOW 18,214.42 -10.15 -0.06%
S&P 500 2,110.74 -3.12 -0.15%
NASDAQ 4,987.89 +20.7530 0.42%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs