MENU

3 reasons Crown Resorts Ltd is worth the punt

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.

  1. 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.
  2. 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.
  3. 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!

Don't miss this spectacular EOFY deal!

You're just two clicks away from INSTANT ACCESS to all The Motley Fool's premium investing reports, including "The 5 Best Stocks in Australia REVEALED" and "How to Profit from the IT Arms Race"... as well as over one dozen active BUY recommendations inside the exclusive Motley Fool Share Advisor website! Secure our best offer and save a total of $499 through our limited-time only EOFY sale. Click here when you're ready to complete your deal: You're just two clicks away from taking control of your family's financial future. So don't delay!

Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.