MGM Resorts Stock Rallies After CityCenter Sets Special Dividend

Shares of MGM Resorts International rallied 3% in premarket trade Thursday, after the casino operator and Infinity World Development Corp. said their CityCenter Holdings business will pay a special dividend of $400 million. The dividend will be paid April 30, which MGM and Infinity getting $200 million each. The companies also said CityCenter, a Las Vegas development 50% owned by MGM, which operates Aria Resort & Casino and Mandarin Oriental and other hotel and condominium assets, will start paying out distributions of up to 35% of excess cash flow every year. "We are pleased that the improving Las Vegas hospitality market and increased recognition of the attributes of Aria and CityCenter has enabled us to announce this distribution to the shareholders," said Infinity chief operating officer Bill Grounds. MGM's stock has edged up 1% year to date, in line with the S&P 500's 1.1% gain.