With the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) sitting above 5,400 points, there are very few blue chip stocks looking as appealing as Crown Resorts Ltd (ASX: CWN).
The stock has dropped more than 16% since peaking at $18.22 in January and is now sitting at $15.19, its lowest level since last September. Here are three reasons a bet on Crown Resorts today could pay off big-time in the long-run.
- Crown Resorts possesses excellent growth potential overseas, particularly in the Asian markets. The great news is, a number of key regions, like Japan and South Korea, are considering changing their gambling laws which increases the chance of big returns from outside Australia.
- Melco Crown Entertainment, of which Crown Resorts owns 33.7%, recently established a dividend policy which will significantly boost Crown's annual income. While this dividend payment could be put towards further developments for the company, it could also be used to boost its own dividend policy in the near future. Currently, the stock yields a partially franked 2.4% dividend.
- With a market capitalisation of just over $11 billion, Crown is a strong core stock for any portfolio. It currently looks more appealing than other core stocks including Woolworths Limited (ASX: WOW) or Westpac Banking Corp (ASX: WBC), based on its current price and future earnings potential.
There's just ONE DAY left!