Vici Properties’ yield is now near an all-time high, but what is the business telling us?
Vici Properties’ yield is now near an all-time high, but what is the business telling us?
Vici Properties (VICI +1.04%) is one of my favorite dividend stocks, and I've owned it for more than six years. To say that its stock price hasn't performed well would be an understatement, and thanks to a recent decline, shares now yield about 7.7% annually, close to the highest level in its history.
Despite the poor stock price performance, I'm still a big fan of Vici from a long-term perspective. Here's why I've added to my position several times recently, and why I'm likely to continue doing so while the high yield remains.
Vici Properties and its dividend
If you aren't familiar with the company, Vici is a real estate investment trust, or REIT, that owns 103 properties, most of which are occupied by gaming businesses. It owns the real estate for some of the most famous casinos on the Las Vegas Strip, including Caesars Palace, MGM Grand, and The Venetian. Tenants lease the properties under long-term agreements, up to 50 years, with rent increases tied to inflation. In short, the business is designed to generate predictable, growing income from its properties.
VICI Vici Properties
$23.34+$0.24 (+1.04%)
NYSE · As of 3:02 PM ET 10/20/26
Vici spun off from Caesars Entertainment in 2017 and has increased its dividend for eight consecutive years. And while a 7.7% yield might sound high, Vici only expects to pay about 75% of its funds from operations (FFO) as dividends this year, a very comfortable payout level for a REIT. Not only is the dividend well covered by the company's income, but the built-in rent increases in its leases should allow it to maintain its dividend growth streak.
Why is the stock down?
Averytin News Financial update.