UBS: Wynn Macau's Final Dividend for FY2025 Exceeds Expectations, Positive Stock Reaction Anticipated

Stock News
Yesterday

UBS released a research report stating that Wynn Macau announced a final dividend per share of HK$0.223 for fiscal year 2025, surpassing the market expectation of HK$0.185. The final dividend for FY2025 represents an increase compared to both the interim dividend for FY2025 and the final dividend for FY2024, which were HK$0.185. This brings the total dividend per share for the full year to HK$0.408, implying an attractive dividend yield of approximately 7.7%, the highest in the industry. The bank has set a target price of HK$8.4 and maintains a "Buy" rating. The report indicates this represents a payout ratio of about 131% (compared to approximately 42% in FY2024), accounting for 65-75% of the free cash flow generated in FY2025. UBS expects a positive reaction in the share price, as this significant dividend increase reflects management's confidence in the sustainability of demand and its leverage position.

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