Another issue faces casino investors: Potential dividend cuts. BJK has a 30-day SEC yield of just over 2% and a trailing 12-month yield of almost 5%. By comparison, the Consumer Discretionary Select Sector SPDR (NYSEArca: XLY), a broader measure of large-cap discretionary stocks, has a dividend yield of just 1.35%. Macquarie said it sees “imminent dividend cuts” from MGM, MGM China, Wynn, Wynn Macau and SJM Holdings this year.
Those stocks combine for almost 17% of BJK’s weight. Dividend cuts from casino operators would belie positive payout trends in the consumer discretionary sector, which is expected to be just one of two sectors to post double-digit dividend growth in 2015. Financial services is the other. [Dividend ETF Ideas for 2015]
Market Vectors Gaming ETF
ETF Trends editorial team contributed to this article.