Saturday, May 05, 2012

Profit from the Kentucky Derby

The Kentucky Derby, considered to be the most famous horse race in the United States, was held this Saturday in Louisville, Kentucky. It is the first of the three major races of the Triple Crown of Thoroughbred Racing and will be followed by the Preakness Stakes and the Belmont Stakes.

Is there a way to make money on horse racing without betting on the outcome of a race? Definitely. turned up a list of a dozen stocks in the horse racing industry, and several of them pay dividends.

A perfect example is Churchill Downs Inc. (CHDN), the host of the Kentucky Derby. This is the holding company of the Churchill Downs Racetrack that originally opened in 1875. It also owns Arlington Park, the Calder Race Course, the Fair Grounds Race Course, and the Trackside Off-Track-Betting Facilities. The stock trades at 17.2 times forward earnings, and pays a yield of 1.0%.  Revenues were up 8.8% for the latest reported quarter.

Dover Downs Gaming & Entertainment Inc. (DDE) owns Dover Downs Raceway, a harness racing track with pari-mutuel wagering. The company has a forward price to earnings ratio of 9 and pays a generous yield of 4.3%. Revenues were up 7.9% for the latest quarter.

Penn National Gaming Inc. (PENN) owns racetracks and off-track wagering facilities in Colorado, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, New Jersey, Ohio, Pennsylvania, West Virginia, and Ontario. The stock has a forward PE of 15.6 but does not pay a dividend.

For a free list of stocks involved in the horse racing industry which you can download, sort and update, go to

By the way, if you want a free horse race handicapping program, check out the one at

Disclosure: Author did not own any of the above at the time the article was written.


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