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Las Vegas Sands (
LVS) is a stock that's outgrown its name. Today, less than 15% of the firm's revenues actually come from Vegas -- the rest comes from Asia, thanks to a portfolio of big-ticket properties in Macau, Singapore and Cotai. But wherever those sales come from, they're funding some substantial debt reductions and dividend payouts in the last year. All told, LVS has paid out an 8.6% shareholder yield in the last year.
LVS owns the Sands, Venetian, and Palazzo names, as well as a Four Seasons franchise in Macau, laying claim to a handful of the most successful casino resort brands in the gaming industry. Sands has a winning recipe for building gaming properties around the world. As gambling becomes legalized in more and more spots around the world, that international success should do very well for LVS. In Sands' existing properties, it enjoys big barriers to entry. For example, casino megaresorts cost billions to develop, and in crown jewel locations such as Macau, competition is limited to the few firms that can grab one of just six licenses to operate casinos in China. LVS owns two of them.
Global discretionary spending should help spur growth in LVS - even in Las Vegas. Chairman and CEO Sheldon Adelson owns more than 50% of Sands, a fact that puts management's interests in line with shareholders, and all but guarantees big shareholder yield payouts in the future. Earnings on Oct. 28 could provide the next hint at this stock's willingness to rewards its owners.
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Shareholder Yield Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.