Highest-Yielding Gaming Stocks Worth Considering

The gaming industry is growing at a steady pace, but still not attracting the majority of conservative investors. Video game companies don't have much investment in capital expenditures, resulting in large amounts of free cash flow to pay increasing dividends to shareholders. Unfortunately, not many of them opt to payout dividends. However, as market researchers expect the global gaming population to increase by over 5% every year, it's easy to predict gaming companies will grow accordingly. Activision and EA, two of the largest gaming names in the world, continue to be the blue-chip options for most people when it comes to mid to long-term investments. However, they are worth considering if you're planning to supplement your dividend-yielding portfolio as well. Here's their overview.

Activision Blizzard (NASDAQ:ATVI)

Activision Blizzard is paying dividends since 2012. As of May 23 2023, Activision Blizzard's latest TTM dividend payout is $0.47 and the current dividend yield is 0.59%. That may be under the yield average, but despite that, this stock is a buy. Not only they have released several top-rated AAA games recently, but Microsoft's $69 billion takeover deal has been approved by the regulatory bodies, making Activision Blizzard in good hands for the future.

Electronic Arts (NASDAQ: EA)

Electronic Arts is not performing at the high level that investors are accustomed to, but it remains a valuable brand to invest in. Although the stock has roughly kept pace with the S&P 500's 10% decline in the past year, shares were sent lower due to the fiscal third-quarter report. However, EA maintained high profits as its executives promptly responded to changing demand trends through cost-cutting measures. Thanks to this, EA could keep providing good returns to investors by using stock buybacks and dividend payments. Current dividend yield is 0.61%.

Expand the gaming portfolio with casino company stocks

The gaming industry is not just about video games, just like the casino industry is not just about slot machines with flashing lights and bells. The facade of darkly lit rooms with nicely dressed people was created by movies and TV shows, portraying casinos as almost taboo establishments of elitist luxury. In reality, casinos are businesses like any other. They provide entertainment services in exchange for money, with the only difference being you can go home with more or less the money you walked in with. When it comes to investing, gaming companies can be a worthy addition to your portfolio. If you're looking to diversify and dividend payouts are your priority, here are some of the highest-yielding gaming stocks worth considering.

International Game Technology PLC (NYSE:IGT)

IGT is one of the leading players in the lottery and gaming sectors. The company has a good track record of dividend payouts since 1995 and didn't stop even during the pandemic. The average yield is 3.21%. Cash payouts started at $0.03 in 1995, climbing up to $0.20 in 2015.

Wynn Resorts (NASDAQ:WYNN)

Wynn Resorts is a Las Vegas-based casino operator with two resorts in Macau and one in Nevada. The gaming giant has been paying healthy dividends since 2013 when it started at $1.00 per share. Wynn currently pays a 0.98% yield. Although the stock hit its lowest point in 2015, it is worth mentioning it's slowly recovering.

Evolution Gaming Group (STO:EVO)

Evolution Gaming is a leading name for live casino solutions, providing casinos with various live roulette games among other titles. While the Swedish company may not offer the highest dividends, it has displayed consistent growth and dividend payout. Evolution Gaming Group AB's Board has set a dividend policy mandating the annual distribution of at least 50% of the company's net profit. For 2023, the yield is 1,78%.

Entain PLC (LSE:ENT)

Entain is a multinational company operating brands such as Bwin, Coral, Ladbrokes, and PartyPoker. It has a significant presence in both physical and online platforms, offering steady dividends to its shareholders which are currently sitting at 1.5%.

Something to keep an eye on

Las Vegas Sands Corp. (LVS) has its roots in brick-and-mortar casinos, but also a substantial presence in the online gaming market. The company had historically provided solid dividends averaging 5,67%, although the pandemic impacted its payouts. Even though the company is silent about resuming the payouts, it's good to keep an eye on them. Add Flutter Entertainment to your list as well. This UK-based company is the owner of popular iGaming brands like Paddy Power, Betfair, and FanDuel. With a global reach and diversified income streams, Flutter has historically offered a reliable dividend yield, stopping after 2019.