Monday, May 02, 2016

How to Invest in the Kentucky Derby & Horse Racing

The Kentucky Derby will be held at the end of this week, on Saturday, May 7, in Louisville, Kentucky. This is probably the most watched horse race in the United States. The Kentucky Derby is the first race of the Triple Crown of Thoroughbred Racing, with the second being the Preakness Stakes and the third, the Belmont Stakes.

If you want to make money from horse races, you can bet on a race horse, or you can buy a horse race track related stock. has a list of almost ten stocks in the horse racing industry, several of which pay dividends.

The host of the Kentucky Derby is Churchill Downs (CHDN), the holding company of the Churchill Downs Racetrack founded in 1875. Other operations it has includes Arlington Park, the Calder Race Course, the Fair Grounds Race Course, and the Trackside Off-Track-Betting Facilities. The stock trades at 36 times trailing earnings, and 18 times forward earnings. Revenues for the latest quarter were up an incredible 62%. The company pays a small dividend of 0.9%.

Another racetrack stock is Dover Downs Gaming and Entertainment (DDE), which owns Dover Downs Raceway, a harness racing track with pari-mutuel wagering. The stock sports a trailing price to earnings ratio of 18.3. Quarterly revenues increased slightly versus the same quarter last year.

Penn National Gaming Inc. (PENN) owns many racetracks and off-track wagering operations in Colorado, Illinois, Indiana, Iowa, Louisiana, Maine, Mississippi, Missouri, New Jersey, Ohio, Pennsylvania, West Virginia, and Ontario. The stock has a forward PE of 16.6. Revenues were up 7.5% for the latest reported quarter, with earnings spiking over 300%.

For a free list of  horse racing stocks which you can download, sort and update, go to Also, if you want a free horse race handicapping program, check out the one at

Hope you place your bet on the right stock, and your investment comes in first place.

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


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