Sands China Resumes Dividend Payments for the First Time in Five Years

The renowned Macau gaming operator Sands China announced on Friday that it will provide its first dividend since 2019. The Las Vegas Sands subsidiary declared a final pay of HK$0.25 (US$0.032) per share for the 2024 financial year ending December 31^st. Shareholders have until May 30^th to register for the dividend, which will be distributed on June 20^th.

Analysts and investors anticipated the announcement, considering Sand China’s impressive shares as of January 31^st, 2025. It is one of several Macau-based gaming operators that have reinstated dividends, including MGM China and Wynn Macau Ltd. The company will pay about HK$2.02 billion (US$260 million) in dividend payouts.

Swirling Speculations

In a local report, JP Morgan analysts pointed out that Sands China’s declared dividend was a 25% ratio of full-year earnings in 2024, representing a 1.5% yield. Nevertheless, they advocated for a flexible perspective where Sands China structures its dividends based on the calendar year rather than the financial year’s performance.

The analysts also suggest the payout is part of a semi-annual cycle that includes a similar payment in the second half of the year. With this approach, the company could end 2025 with a HK$0.50 dividend per share. If favorable financial conditions continue, Sands China may significantly increase dividend payments in 2026, rising to HK$1.50 per share.

Strong Market Recovery

The resumption of dividends was announced alongside FY24 results, highlighting outstanding market recovery by Sands China. The gaming operator reported US$7.08 billion in net revenue, an 8.4% increase from FY23. Net profits surged to US$1.05 billion, a remarkable 51% rise. Adjusted EDIBTA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also grew to US$2.33 billion, up by 4.7% year-on-year.

However, Sands China did end 2024 with a slight decline of 5% - US$1.77 billion - in year-on-year net revenues for Q4. The operator recorded a net income of US$237 million, down from US$288 million in Q4 2023.

Pre-Pandemic Highs

Sands China had a consistent dividend payout before COVID-19 hit. The company offered a HK$1.99 dividend per share from 2014 to 2019. However, the significant impact of the pandemic resulted in dividend restrictions initially meant to last until 2023 and were later extended to January 1^st, 2025.