Only one Macau casino will pay dividends in 2024, analysts say
Jefferies predicts Galaxy Entertainment will be the sole dividend payer.
Macau.- Analysts at Jefferies have forecast that Galaxy Entertainment Group is likely to be the only Macau casino operator to issue dividends in 2024. This forecast is based on discussions with Galaxy’s management during an investor event in London.
According to Hong Kong-based analyst Andrew Lee, Galaxy’s strong financial position places it favourably to continue dividend payments. Lee emphasized Galaxy’s track record as the only operator to issue dividends in the first half of 2023.
See also: Galaxy Entertainment Group announces pay raise for its employees
Lee suggested that Galaxy’s dividend payout ratio, historically around 30 per cent, could see gradual increases due to its solid financial standing. This projection is supported by the company’s cash reserves, which cover ongoing capital expenditures for the Galaxy Macau expansion on Cotai.
Other Macau operators like Sands China and Wynn Resorts, the parent company of Wynn Macau, are less likely to make dividend payments. Fitch Ratings Inc has predicted Sands China may resume dividends in 2026, while Wynn Resorts awaits a resolution on its leverage profile in Macau before committing to dividend resumption.
