This 5.6%-Yielding Dividend Stock Keeps Finding New Ways to Grow

Core Viewpoint - Vici Properties is a leading real estate investment trust (REIT) specializing in experiential real estate, particularly in the gaming and hospitality sectors, with a strong focus on generating stable rental income and increasing dividends for investors [1][3][9] Company Performance - In 2024, Vici Properties reported adjusted funds from operations (FFO) of $2.4 billion, or$2.26 per share, reflecting increases of 8.4% and 5.1% respectively, which enabled a 4.2% dividend increase, marking the seventh consecutive increase since its public listing in 2018 [3] - The company has achieved a peer-leading annual dividend growth rate of 7%, significantly higher than the 2.2% average of other net lease-focused REITs [3] Rental Income and Investments - Vici Properties benefits from rising rental income, with 40% of its leases linked to inflation, allowing it to capture higher rental increases amid elevated inflation [4] - The company announced $1.1 billion in new investments last year, with a weighted average initial yield of 8.1$300 million mezzanine loan for the development of One Beverly Hills [5][6] - The REIT is also collaborating with partners to identify additional investment opportunities and has committed over $720 million to Great Wolf Resorts across multiple transactions [6] Future Opportunities - Vici Properties has agreed to provide a construction loan of up to$105 million for a Margaritaville Resort in Kansas City, along with options to purchase related properties [8] - The company is set to invest up to $700 million in The Venetian Resort for extensive renovations, with rent adjustments reflecting the increased investment [8] Investment Outlook - Vici Properties has consistently provided a lucrative and steadily rising income stream since going public, positioning itself as an excellent long-term investment opportunity for those seeking passive income and potential price appreciation [9]