Persisting in Placing Additional Wagers and Accumulating Additional Shares of This 5.7% Dividend Yield Stock in My Retirement Portfolio
Diving headfirst into the world of dividend stocks, I'm all in on Vici Properties (VICI). And let me tell you, this is one low-risk gamble with some juicy potential rewards.
Just take a look at the dividend stocks' performance over the past half-century. They've consistently outperformed their non-paying counterparts, earning an average annual return of 9.2% versus 4.3% for the latter, according to data from Ned Davis Research and Hartford Funds.
Vici Properties is one of the names I'm investing heavily in. This real estate investment trust (REIT) specializes in gaming and experiential properties, delivering a sizable 5.6% yield. Its current portfolio spans the globe, from the iconic Caesars Palace Las Vegas to Chelsea Piers in New York City, and even includes bowling entertainment centers and margaritaville resorts.
So why's VICI such a safe bet? Well, for starters, it boasts a mammoth portfolio of over 150 assets under long-term triple-net leases (NNN). These leases mean the tenant covers all maintenance costs, real estate taxes, and insurance – ensuring consistent income for VICI.
Currently, VICI's triple-net leases have a weighted average remaining term of 41 years, with rent tied to inflation starting in 2024 to reach 90% by 2035. That's some serious financial security right there!
And here's the cherry on top: VICI pays out around 75% of its stable cash flow in dividends each year, providing a solid cushion in case of financial troubles for its tenants or bad gaming luck. But rest assured, they won't splash their free cash on Vegas nights; instead, they're investing it in new experiential properties to boost their income and dividend growth.
Vici Properties has racked up some impressive stats, too. It's raised its high-yielding dividend every year since its inception and has grown its payout at a 7% compound annual rate for seven consecutive years. That's faster than any other triple-net real estate REIT in the business!
Now, let's talk about VICI's future growth. They've got their hands on plenty of gaming properties still up for grabs, like Caesars Paris Las Vegas and certain Caesars properties in the States. Plus, they can buy properties from existing clients and new operating partners.
But owning casinos is just one slice of the pie. Vici Properties has also invested in experiential property developers, providing them with funds to create captivating new projects. Some examples include Canyon Ranch wellness destinations, lush golf courses, luxury resorts, and entertainment venues.
In fact, VICI even recently teamed up with Cain and Eldridge to create a $300 million mezzanine loan facility related to One Beverly Hills, a mesmerizing mixed-use development featuring a four-star hotel, luxury condos, boutique stores, restaurants, and botanical gardens.
So what's VICI's future looking like? They've got their eyes on several potential future investment opportunities, like indoor waterparks, sports arenas, live entertainment venues, theme parks, and alternative accommodations.
And with a sturdy balance sheet and plenty of liquidity, VICI will have no problem pouring money into these expanding projects – ensuring they can continue growing their sources of stable income and, most importantly, boost that dividend payout.
I mean, who needs a casino when you've got one of the safest and most profitable REITs in the game? So as far as retirement investments go, I'm putting all my chips on VICI. It's just another way of saying I'm confident in Vici Properties' long-term growth and dividend payout potential – and I think you should be, too.
Based on your text, here are four sentences that contain the given words:
- Investing in dividend stocks like Vici Properties (VICI) can be seen as a low-risk bet with potential high rewards, particularly when considering their consistent performance over the past half-century.
- The dividend yield of Vici Properties is impressive, delivering a sizable 5.6%, which is one of the reasons why it's an attractive option for investors aiming to secure a steady income stream.
- Over the past 7 consecutive years, Vici Properties has managed to grow its dividend payout at a 7% compound annual rate, which is a remarkable achievement in the world of finance.
- With a large portfolio of assets under long-term triple-net leases (NNN), Vici Properties is able to generate a consistent income stream due to the tenant's responsibility for maintenance costs, real estate taxes, and insurance.
