High-Yield Casino REITs and Dividend-Generating Gaming Stocks in a Post-Pandemic Recovery

The post-pandemic recovery has reshaped the gaming and leisure sector, creating opportunities for investors seeking stable dividends and strong cash flow. As consumer spending rebounds and online gaming expands, casino REITs and gaming stocks are emerging as compelling options for income-focused portfolios. This analysis identifies undervalued, stable-dividend payers with robust fundamentals, drawing on recent financial performance, valuation metrics, and industry trends.

Casino REITs: Steady Dividends Amid Regulatory and Economic Shifts

Casino REITs, which own and lease properties for gaming operations, offer a unique blend of real estate income and gaming sector exposure. Two standout names are VICI Properties (VICI) and Gaming and Leisure Properties (GLPI).

VICI Properties (VICI) has demonstrated consistent growth, with Q3 2025 revenues rising 4.4% year-over-year to $1.0 billion and adjusted funds from operations (AFFO) per share increasing 5.3% to $0.60. The company's dividend yield of 6.28% reflects a payout ratio of 65.54%, balancing shareholder returns with financial prudence. Its recent 4.0% annual dividend increase underscores its commitment to rewarding investors while maintaining a conservative leverage profile.

Gaming and Leisure Properties (GLPI), meanwhile, offers a 6.51% yield and a five-year annualized dividend growth rate of 2.69%. Despite a high payout ratio of 117.96%, GLPI has raised its dividend for four consecutive years, averaging 2.68% growth in the past 12 months. Its focus on long-term leases with operators like Caesars and Penn provides a predictable income stream, though investors should monitor its debt load and exposure to volatile gaming markets.

Both REITs benefit from the post-pandemic surge in leisure spending but face risks such as regulatory shifts and economic downturns. For example, VICI's portfolio includes properties in Macau, where geopolitical tensions could disrupt operations.

Gaming Stocks: Navigating Macau Exposure and Digital Expansion

Gaming stocks like Las Vegas Sands (LVS), Wynn Resorts (WYNN), and MGM Resorts (MGM) offer a mix of traditional brick-and-mortar operations and digital innovation.

Las Vegas Sands (LVS) reported Q3 2025 net revenue of $3.33 billion, a 24% year-over-year increase, and raised its annual dividend to $1.20 per share ($0.30 per quarter). With a 1.51% yield and a BBB- credit rating, LVS appears well-positioned to sustain dividends, particularly as its Singapore expansion and Macau operations gain traction. However, its 60% Macau EBITDA exposure subjects it to geopolitical risks, including U.S.-China tensions.

Wynn Resorts (WYNN) generated $1.83 billion in Q3 2025 operating revenues, with a 2.2% year-over-year increase in Las Vegas operations driven by premium pricing. The company's 0.80% yield and $0.25 quarterly dividend reflect its focus on high-end markets, though its 20% Macau exposure and weaker credit profile compared to LVS pose risks. Analysts at J.P. Morgan have raised WYNN's price target to $136, citing strong Macau performance.

MGM Resorts (MGM) reported $4.3 billion in Q3 2025 net revenues but posted a $285 million net loss, partly due to a recent cyberattack and high debt costs. While its adjusted EBITDA of $506 million highlights operational resilience, its lack of a current dividend and 8% debt cost (vs. LVS's 6.5%) raise concerns about long-term sustainability.

Undervaluation and Risks in the Sector

The U.S. casino market is projected to grow at a 5.85% CAGR through 2033, driven by online gaming and leisure demand. However, companies like Caesars Entertainment (CZR) and Penn Entertainment (PENN) face challenges. Caesars' 7× net-debt-to-EBITDA ratio and 61.5x forward P/E suggest overvaluation despite digital segment growth. Penn's online ventures have shown EBITDA profitability, but its reliance on volatile markets like Pennsylvania and New Jersey remains a concern.

Conclusion: Balancing Yield and Resilience

For investors prioritizing stable dividends and cash flow, VICI Properties and Las Vegas Sands stand out for their disciplined capital structures and growth-oriented strategies. Wynn Resorts offers a compelling yield with strong Macau and Las Vegas performance, though its risks require careful monitoring. Meanwhile, Gaming and Leisure Properties provides a high yield but demands scrutiny of its payout ratio and debt profile.

As the gaming sector evolves, a diversified approach-combining REITs with gaming stocks-can mitigate risks while capitalizing on the post-pandemic rebound. However, geopolitical tensions, regulatory changes, and economic cycles will remain critical factors shaping the sector's trajectory.