Why I Continue Rolling the Dice and Buying More of This 5.7%-Yielding Dividend Stock in My Retirement Account

Core Viewpoint - Dividend stocks, particularly Vici Properties, are seen as low-risk investments with a strong historical performance, outperforming non-payers significantly over the decades [1]. Company Overview - Vici Properties is a real estate investment trust (REIT) focused on gaming and experiential properties, currently offering a dividend yield of 5.6% [2]. - The REIT owns a large portfolio of iconic casinos and experiential properties, including Caesars Palace and the Venetian Resort in Las Vegas, as well as bowling centers and sports facilities [3]. Financial Stability - Vici Properties operates under long-term triple net leases, providing stable rental income as tenants cover all operating costs [4]. - The REIT pays out approximately 75% of its stable cash flow in dividends, allowing for a cushion against tenant financial issues while retaining cash for new investments [5]. Dividend Growth - Vici Properties has consistently raised its dividend for seven consecutive years, achieving a compound annual growth rate of 7%, significantly higher than the average growth rate of 2.2% among similar REITs [6]. Growth Opportunities - The REIT has the right of first refusal to acquire several properties from Caesars and other tenants, indicating potential for future acquisitions [7]. - Vici Properties is also involved in funding the development of various experiential properties, creating an embedded acquisition pipeline [8]. - Recent strategic partnerships, such as the $300 million investment in One Beverly Hills, highlight the REIT's commitment to expanding its portfolio [9]. Future Investment Potential - The REIT identifies numerous future investment opportunities, including indoor waterparks, sports venues, and theme parks, which could further enhance its income sources [10]. - Vici Properties maintains a solid investment-grade balance sheet, providing liquidity for new investments that support dividend growth [11]. Long-term Outlook - Vici Properties is expected to continue its trend of increasing dividends, contributing to long-term wealth growth for investors [12].