Sands China Set to Increase Dividends as Macau Market Gains Strength

Sands China Ltd is expected to secure an amplified market presence in Macau's gaming industry by 2026, a development that is likely to pave the way for "dividend normalisation," according to insights from JP Morgan Securities. This sentiment is echoed by analysts DS Kim, Selina Li, and Lindsey Qian in a recent memo, which articulates expectations of a promising financial trajectory for Sands China this year.

"We (still) see Sands gaining share in 2026 and paying HKD1.0 [US$0.13] per annum dividend per share (implying a 5.5 percent-plus yield at current price) this year," the team stated in their Tuesday report. Despite encountering a subdued fourth quarter, JP Morgan's analysts remain optimistic about the company's path to normalising its dividend payouts. They forecast a disbursement of HKD0.5 for the first half of 2026, culminating in a total of HKD1.0 for the full year.

Operational Challenges and Resilience

Seaport Research Partners' Vitaly Umansky shared similar perspectives in a Monday analysis, suggesting an upward shift in Sands China's dividends as business improves. The year-end performance challenges were attributed to factors deemed "largely seasonal" or "non-recurring" by JP Morgan, including the hosting of the National Basketball Association (NBA) preseason games and Macau's co-hosting of the 15th National Games of the People's Republic of China.

These events were significant for Macau, with all six casino concessionaires, including Sands China, offering support and facilities for the National Games. Despite these challenges, analysts appear unfazed by the company's fourth-quarter financial dip. A January note already indicated that Sands China's margin on EBITDA during the quarter was considered "really bad;" however, this has not deterred positive projections for 2026.

Historical Context and Future Outlook

Reflecting on the company's dividend history provides additional context for understanding Sands China's current financial plans. February last year marked a pivotal point when Hong Kong-listed Sands China announced its first dividend—a sum of HKD0.25 per share—since halting such payments five years prior due to the pandemic.

This came after a previous recommendation in 2018 of a HKD1.00 per share dividend, illustrating the company's capability for consistent shareholder returns before the disruption. Looking beyond the immediate past into 2026, stakeholders remain optimistic about growth opportunities and dividend stability.

With an encouraging market outlook contrasting the setbacks of recent years, Sands China's potential for regaining and expanding its market share while enhancing shareholder value appears promising. Thus, as Macau's gaming market continues to rebound, the financial landscape for Sands China looks poised for positive transformations.

Source: Sands China likely to boost dividend amount as Macau business ramps: analysts, GGRAsia, February 4, 2026.

Posted by Wizard
Feb 04 2026