The Crown Resorts Ltd (ASX: CWN) share price has recovered some of its lost ground, but it could still be a good long-term buy at the current price.
Crown Resorts is one of Australia's largest entertainment businesses and currently has a market capitalisation of $8.6 billion. Here are three reasons why I think Crown is worth a place in your portfolio at this price:
Strongly aligned to the tourism boom
The number of tourists visiting Australia is growing every year, particularly from Asia. Crown is well positioned to benefit from this trend with its high-quality hotels and popular casinos.
The share price is 33% below its all-time high in 2014 and 9% below the price before Crown announced a few of its employees had been arrested in China. The arrests were allegedly because the employees were advertising Crown's casinos to VIP Chinese nationals, which is illegal in China.
Growth projects
Crown has a number of projects to maximise the tourism boom. It has the Sydney Barangaroo project, which will be a huge boost to revenue and means Crown will have a presence in Australia's two major cities.
Crown is also planning on building another large hotel in Melbourne which will create a 388 room six-star hotel and approximately 700 apartments.
Strong dividends
Crown has been paying very generous special dividends in recent years. I'm not expecting more special dividends, but Crown has committed to paying dividends of 60 cents per share annually from now on.
This works out to be a dividend yield of around 5% before franking credits, which is a nice yield going forwards and should grow as the above projects are finished.
