Prediction: This 5.4%-Yielding Dividend Stock Will Produce Market-Beating Returns for Patient Investors

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Matt Frankel, The Motley Fool

Sun, Mar 30, 2025, 9:16 AM 4 min read

Vici Properties (NYSE: VICI) is simply a real property concern trust, oregon REIT, specializing successful gaming existent estate. It owns 54 gaming properties, including immoderate of the astir iconic properties connected the Las Vegas Strip, specified arsenic Caesars Palace, MGM Grand, and The Venetian. It owns an fantabulous portfolio of determination gaming assets, specified arsenic the Borgata successful Atlantic City and MGM National Harbor successful Washington, D.C., and a smaller portfolio of non-gaming properties.

In all, Vici's portfolio contains much than 60,000 edifice rooms; 4.2 cardinal quadrate feet of gaming space; 6.7 cardinal quadrate feet of gathering space; implicit 1,000 food, beverage, and retail outlets; and much than 50 amusement venues.

Although the comparatively high-interest situation hasn't precisely been large for REIT growth, Vici Properties continues to bash an fantabulous occupation of executing its strategy. Here's wherefore this 5.4%-yielding dividend banal could beryllium an fantabulous semipermanent concern to adhd to your portfolio close now.

Vici is the wide person successful gaming existent estate, having spun disconnected from Caesars Entertainment (NASDAQ: CZR) successful 2018. Although the casino concern tin beryllium somewhat cyclical, you mightiness beryllium amazed astatine however coagulated Vici's concern is.

For 1 thing, Vici's lease prime is fantastic. The mean lease successful Vici's portfolio has 41 years near connected it, and 90% of its leases are protected agelong word from ostentation (meaning that rent maturation is tied to Consumer Price Index [CPI] growth).

While Vici is chiefly a casino REIT today, it sees a monolithic accidental to turn successful different types of experiential existent estate. It made its archetypal large non-gaming acquisition successful 2023 (a portfolio of Bowlero bowling centers) and could perchance prosecute non-gaming hotels and resorts, buying centers, sports arenas, amusement venues, and overmuch more.

There's besides country to turn successful gaming. Vici has the close of archetypal refusal to get respective different Las Vegas Strip properties and respective determination assets should Caesars determine to sell.

The institution has already established an fantabulous grounds of adding worth done acquisitions. In its comparatively abbreviated history, Vici has already acquired its largest rival (MGM Growth Properties), The Venetian, and respective different assets and accrued per-share funds from operations (FFO -- the existent property equivalent of earnings) arsenic a result.

Because of its fantabulous superior allocation, Vici has been capable to rise its dividend each twelvemonth since its archetypal nationalist offering (IPO), and there's nary crushed to judge the streak is successful jeopardy anytime soon.