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    Dividend Comeback and Macau Refresh Might Change The Case For Investing In Melco Resorts & Entertainment (MLCO)

    Simply Wall St·12/19/2025 12:18:03
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    • Melco Resorts & Entertainment recently outlined plans to resume quarterly dividends by the end of 2026 while closing two Mocha Clubs and reallocating gaming machines across its Macau portfolio, alongside reopening the renovated Countdown Hotel by the third quarter of 2026.
    • These moves suggest management is prioritizing shareholder returns and higher‑quality guest experiences in Macau through more focused properties and refreshed non-gaming offerings.
    • Next, we’ll examine how the planned dividend restart and Macau property upgrades shape Melco’s investment narrative for long-term investors.

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    What Is Melco Resorts & Entertainment's Investment Narrative?

    To own Melco, you really have to believe in the long game in Macau: that steady, single‑digit revenue growth can still translate into much faster earnings growth as the portfolio is refined, capital spending tapers and the balance sheet slowly heals. The planned dividend restart by 2026 fits neatly into that story, signaling a shift from pure recovery toward cash returns, but it does not change the near‑term reality that interest costs are still heavy and quarterly results can swing with VIP and premium mass volumes. Closing more Mocha Clubs and reopening the Countdown Hotel tilt the short‑term catalysts toward execution on higher‑margin properties rather than headline revenue jumps. The biggest risk is that this sharper focus coincides with any slowdown in Macau demand or regulatory change.

    But one financial risk in particular is easy to miss at first glance. Despite retreating, Melco Resorts & Entertainment's shares might still be trading above their fair value and there could be some more downside. Discover how much.

    Exploring Other Perspectives

    MLCO 1-Year Stock Price Chart
    MLCO 1-Year Stock Price Chart

    Seven fair value estimates from the Simply Wall St Community span roughly US$1 to just above US$22 per share, showing how differently people are modeling Melco’s future. Against that, the planned dividend restart and Macau asset reshuffle put more weight on management’s ability to improve returns despite relatively modest revenue growth, which could matter more for long term performance than any single quarter.

    Explore 7 other fair value estimates on Melco Resorts & Entertainment - why the stock might be worth less than half the current price!

    Build Your Own Melco Resorts & Entertainment Narrative

    Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.