"Big Banks" UBS: SANDS CHINA LTD's dividend meets expectations, stock price is expected to react positively

UBS published a research report stating that Sands China (01928.HK) declared a final dividend of HKD 0.5 per share for the fiscal year 2025, in line with expectations, having previously distributed an interim dividend of HKD 0.25 per share. This final dividend distribution provides visibility for the fiscal year 2026's per share dividend, which is expected to reach at least HKD 1 (i.e., HKD 0.5 every six months). If operating cash flow improves, there may be room for an increase in dividends.

The bank believes that at this level, the implied dividend yield for the fiscal year 2026 is approximately 5.4%, which is attractive and should provide downside support for the stock price, with expectations of a positive response in the stock price