Is Las Vegas Sands' Buyback Program Better Than a Dividend Increase?

In the following video, Fool contributor Matt Thalman discusses why he thinks Las Vegas Sands' recent announcement to initiate a $2 billion share-buyback program was a better decision than increasing the company's current yearly dividend payment of $1.40 per share.

At today's current share price of around $56 per share, with $2 billion the company could buy back around 35 million shares, or 8.8% of the 401 million shares currently in float. But that same $2 billion would increase the dividend by roughly only $0.41 per share, and since the buyback program is over a number of years, if we split the dividend by four, shareholders would get only about an extra $0.10 per share per year, or $0.025 per quarter.

While Matt does agree that the buyback was the better way to go, he says he'd like to see the company do something with the shares it repurchases. Watch the video to find out what that is.

For many companies, successfully capitalizing on a booming Chinese economy is like winning the jackpot. That's indeed the case for gaming company Las Vegas Sands, which made a big bet on Macau gaming about a decade ago that's paid off in spades. The company is now looking to spread its empire further, but will it be able to replicate its prior successes? Learn about all these opportunities, and the risks they pose, in our premium report on Las Vegas Sands. Be sure to claim your copy today by clicking here.

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Fool contributor Matt Thalman owns shares of Las Vegas Sands. The Motley Fool has no position in any of the stocks mentioned. Check back Monday through Friday as Matt explains what caused the Dow's winners and losers of the day, and every Saturday for a weekly recap. Follow Matt on Twitter: @mthalman5513. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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