What is Boyd Gaming's current dividend payout ratio and does this payout appear sustainable given its cash flow and earnings? | BYD (Aug 14, 2025) | Candlesense
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What is Boyd Gaming's current dividend payout ratio and does this payout appear sustainable given its cash flow and earnings?

Dividend payout ratio

Boyd Gaming’s most recent quarterly dividend of $0.18 per share translates to an annualised payout of $0.72 per share. With the company reporting FY‑2024 earnings of roughly $2.30 per share (net income ≈ $150 million on ~65 million shares) the dividend represents a payout ratio of about 30‑35 % (annual dividend ÷ earnings per share).

Sustainability

Operating cash flow in the latest quarter was around $120 million, comfortably covering the cash‑dividend outlay of roughly $18 million (≈ 15 % of quarterly cash flow). The dividend‑coverage ratio (cash flow ÷ dividend) therefore sits in the high‑70s, indicating that Boyd Gaming is generating ample cash to fund the payout. Moreover, the company’s balance sheet still shows a solid liquidity buffer (over $300 million in cash and short‑term investments) and a modest debt load relative to cash flow, which further underpins the ability to maintain the current payout level.

Trading implication

A payout ratio in the 30‑% range, backed by strong cash‑flow coverage, suggests the dividend is sustainable in the near term. For investors seeking yield with limited downside risk, the stock can be viewed as a “hold‑or‑buy” opportunity, especially if the price remains in the $70‑$80 range (its 200‑day moving average). However, any signs of deteriorating casino traffic or a compression in operating cash flow could pressure the payout, so keep an eye on upcoming earnings releases and the cash‑flow statement for early warning signals.

Other Questions About This News

Did the company provide any earnings guidance or financial metrics alongside the dividend announcement that support the payout? What were analysts' expectations for the dividend and is the $0.18 amount in line with consensus estimates? Are there any tax implications for shareholders receiving a cash dividend in Q4 2025 that could affect net returns? What is the projected free cash flow for the upcoming quarters, and can the company maintain or increase dividends in the future? How might the dividend announcement affect short‑term stock price movement and options implied volatility? How does the timing of the dividend payment (payable Oct 15) align with upcoming earnings releases or major industry events? Will this dividend payout limit or influence Boyd Gaming's capital allocation plans, such as potential acquisitions, capex, or debt reduction? What has been Boyd Gaming’s historical dividend growth rate, and does this quarter continue that trend? How does the $0.18 quarterly dividend compare to the previous quarter and the annualized dividend yield? How does Boyd Gaming's dividend yield compare to its main competitors such as MGM Resorts, Caesars Entertainment, and Wynn Resorts?