VICI Properties Ranks Among Top Trading Volume Equities as Dividend Strategy Fuels 4.4% AFFO Growth Outlook

VICI Properties (NYSE:VICI) rose 1.56% on August 1, with a trading volume of $0.29 billion. The stock’s performance reflects optimism around its updated 2025 guidance, which now anticipates 4.4% growth in adjusted funds from operations (AFFO) per share. The company emphasized its dividend-driven total return strategy, aligning with equity strategist Savita Subramanian’s analysis of dividend yield’s historical role in boosting returns. Management highlighted its internally funded growth model, leveraging $600 million in annual retained cash flow to expand its portfolio without relying heavily on external financing.

Strategic investments in high-profile projects, such as the Red Rock Resorts-led North Fork Mono Casino Resort and the One Beverly Hills development, underscore VICI’s focus on long-term partnerships with operators. These projects, funded through retained cash and mezzanine loans, aim to capitalize on experiential real estate demand while maintaining disciplined cost structures. The company’s balance sheet remains robust, with $2.9 billion in liquidity and a net debt-to-EBITDA ratio of 5.1x, well within its target range of 5–5.5x. This financial flexibility supports its strategy of capital preservation and dividend protection amid market volatility.

The earnings call reinforced confidence in VICI’s ability to navigate short-term challenges in the Las Vegas market, such as reduced Canadian tourism and softer gaming revenue. Management noted that long-term leases with corporate guarantees and high occupancy rates at premium properties provide resilience. Additionally, the company’s focus on same-store NOI growth—projected to outpace net lease REIT peers by 5x—positions it to sustain earnings growth even as regional markets adjust to shifting consumer trends. Analysts at Stifel Nicolaus and Mizuho recently upgraded their price targets, reflecting optimism about VICI’s operational and financial discipline.

A backtesting analysis of a strategy purchasing the top 500 stocks by daily trading volume and holding for one day returned 166.71% from 2022 to the present, outperforming the 29.18% benchmark. This highlights the impact of liquidity concentration in driving short-term stock performance, particularly in high-volume equities like VICI. The strategy’s 137.53% excess return underscores the importance of trading activity and market sentiment in shaping returns, aligning with VICI’s strong volume and analyst-driven momentum.