3 Reasons Vici Properties Is a Must-Buy for Long-Term Investors

Core Viewpoint - Vici Properties is a real estate investment trust (REIT) that specializes in owning casino properties, benefiting from the cyclical nature of the gaming industry while providing a stable income stream through its significant dividend yield [2][4][8]. Group 1: Business Model and Resilience - Vici Properties operates as a landlord rather than a casino operator, making its business model less cyclical compared to casino operations [4][7]. - The value of casino properties remains stable even during economic downturns, as evidenced during the COVID-19 pandemic when tenants continued to pay rent [6][5]. - The REIT's ability to increase dividends during challenging times demonstrates its financial resilience and commitment to returning cash to investors [9][6]. Group 2: Dividend Yield and Financial Strength - Vici Properties offers a dividend yield of 5.5%, significantly higher than the S&P 500 average of 1.2% and the average REIT yield of 3.8% [8]. - The company has consistently increased its dividend since it began paying one in 2018, indicating a strong focus on shareholder returns [9][10]. - Vici's balance sheet received an upgrade from Moody's, moving to investment grade, which will help reduce interest costs associated with its debt [11]. Group 3: Growth Potential - Vici Properties has a long-term growth strategy that includes diversifying its portfolio beyond gambling and providing loans for construction projects [14][15]. - The average lease term for Vici's properties is 40 years, with 90% of leases having automatic rent increases tied to inflation, ensuring steady income growth [15]. - Future acquisitions, whether in casinos or other assets, are expected to enhance growth potential, contributing to increased dividend payouts [15][14].