VICI Stock Recent News

Investors love dividend stocks, especially high-yield varieties, because they offer a significant income stream and have substantial total return potential.

When Your REIT Will Cut Its Dividend

Diversification is key in REIT investing, mirroring my roulette strategy—spread bets across sectors for optimal risk-adjusted returns. Net lease REITs offer stability and steady dividends, outperforming residential mREITs over 15 years and thriving even in volatile environments. Current market trends and strong earnings support overweighting net lease REITs, with sector consolidation and potential rate cuts as additional tailwinds.

Enterprise Products Partners offers resilient, fee-based cash flows, a strong balance sheet, and a well-covered 6.6% yield at a reasonable valuation. VICI Properties owns iconic gaming and hospitality assets with triple-net leases, and delivers a well-covered 5.5% yield with strong dividend growth. Both EPD and VICI have demonstrated operational strength and growth even during economic uncertainty, making them reliable sources of income.

VICI to benefit from high demand for its mission-critical assets, long-term leases and decent balance sheet. Steady dividend payouts enhance shareholder value.

Some REITs are truly exceptional. They consistently outperform the market. I highlight three such exceptional REITs to buy and hold "forever".

VICI Properties Inc.'s strong fundamentals, robust liquidity, and a 5.5% dividend yield make it a solid bet during market uncertainty despite potential selling pressure from a slowing economy. Q1 performance showed solid AFFO growth and revenue beat, but FFO declined due to a $80 million CECL allowance, raising concerns about future growth. VICI's balance sheet optimization led to investment-grade credit ratings and no debt maturing until 2026, ensuring financial stability and solid leverage ratios.

Scale is a critical competitive advantage for companies, enabling them to expand, attract capital, and achieve strong market positions, as seen with Realty Income, Prologis, and Public Storage. Realty Income leverages its scale and diversification to maintain high occupancy rates and strong financial performance, boasting a fortress balance sheet and impressive dividend growth. Prologis excels with its vast warehouse portfolio, robust development pipeline, and strategic expansion into data centers, supported by a strong balance sheet and high earnings growth.

VICI Properties specializes in the unique gaming property sector, particularly in Las Vegas, offering a strong position in the global entertainment hub. VICI's diversified investment strategies, including property growth funds and experiential credit solutions, drive impressive AFFO growth and secure top-tier market positioning. VICI benefits from 100% occupancy, long-term leases, and strong tenant relationships, ensuring stable, increasing rents and high barriers to entry.

In Q1 2025, VICI, GLPI, Agree, and Realty Income generated positive investment spreads and total returns exceeding their cost of equity, making them attractive investments. EPRT and STAG have negative investment spreads and total returns below their cost of equity, making them less favorable investment options. This analysis uses cap rates and the weighted average cost of capital to estimate investment spreads. We also compare total returns to the cost of equity to measure accretion.