La unidad Sands China de Las Vegas Sands (NYSE: LVS) podría reanudar los dividendos el próximo año y es poco probable que el operador de casinos compre a los inversores minoritarios. 

This perspective comes from Seaport Research Partners analyst Vitaly Umansky. In a recent update to clients after discussions with Las Vegas Sands management at the 2024 Seaport Annual Summer Conference, Umansky stated that it’s improbable LVS will look to eliminate Sands China minority shareholders, which would lead to the gaming stock being delisted from the Hong Kong Stock Exchange.

"There is not a likely scenario at this stage of a full buyout of the Sands China minority, and delisting of Sands China,” observed Umansky. “A listing in Hong Kong continues to show Sands’ commitment in China.”

In December of last year, LVS increased its stake in the China entity to 71.19% from 70%. Umansky mentioned that it’s conceivable the Las Vegas-based parent may wish to raise that stake to 75% or higher, but completely removing minority investors is not anticipated. Sands China manages five integrated resorts in Macau. 

Sands China Dividend Might Return Next Year 

It has been 13 months since LVS restarted its quarterly distribution, and Sands China is still one of the three Macau operators that are not providing a dividend. Melco Resorts & Entertainment (NASDAQ: MLCO) and SJM Holdings are the additional companies. 

As the year began, there was a common expectation that Sands China might need another year to reinstate its dividend, making Umansky’s projection for 2025 not an unexpected drawback. The continuous recovery in Macau, where Sands China holds the largest market share, may facilitate the return of dividends. The gaming company has strong justifications to continue payouts. 

“Hong Kong investors like dividends, so it makes sense to restart some dividends at Sands China,” added Umansky.

Numerous major market players in Hong Kong are institutions connected to state-owned banks or mainland China. This suggests that Sands China might gain some approval from Beijing by reinstating its dividend. 

LVS Expected to Prioritize Buybacks Instead of Dividends 

Since revealing the reinstatement of its quarterly payout in July 2023, Las Vegas Sands has not raised it from 20 cents per share each quarter. Prior to the coronavirus pandemic, the company was among the most consistent dividend growers in the gaming sector, but Umansky stated that the operator's current focus will be on share buybacks rather than increasing dividends.

"Las Vegas Sands will prioritize share buybacks — especially at current valuation — over dividend increases,” he noted.

Regarding the happenings in Macau, Umansky mentioned that it is probable that a section of Sands China's highly publicized Londoner hotel will debut before the year's end, with an additional tower expected to launch next May. As per the Seaport analyst, the Cotai Arena at Venetian Macao is set to reopen prior to the conclusion of 2024 and will achieve full functionality by the end of the first quarter in 2025.