Ameristar Casinos declares 12.5 cents-per-share dividend

Las Vegas-based Ameristar Casinos declared a quarterly cash dividend of 12.5 cents per share, payable on March 15 to stockholders of record as of Feb. 29.

In a statement, the company said Monday the dividend represents an annual rate of 50 cents per share this year, which is a 19 percent increase over the regional casino operator's annual dividend for 2011.

Ameristar, headquartered in Las Vegas, operates eight casinos in Midwest and Southern regional markets, including Jackpot in Northern Nevada. The company announced the dividend ahead of Wednesday's planned release of fourth-quarter and 2011 earnings.

Ameristar announced last week it had closed on a $16 million purchase of a casino site in Springfield, Mass., and will be competing for the state's single casino license in Western Massachusetts.

"We view this as a positive action for the company and its shareholders given the high free cash flow of the business," Macquarie Securities gaming analyst Chad Beynon told investors.