VICI Properties: A Top Dividend Stock Under $50?

VICI Properties Inc. (VICI) has emerged as a prominent player in the experiential real estate investment trust (REIT) sector, owning a diverse portfolio of gaming, hospitality, and entertainment properties. With a strong focus on dividend growth and stability, VICI Properties has caught the attention of income-oriented investors. But is VICI Properties the best dividend stock under $50? Let's delve into the company's fundamentals, dividend history, and competitive landscape to find out.

VICI Properties' portfolio diversification across gaming, hospitality, and entertainment properties contributes significantly to its dividend growth and stability. With 54 gaming properties and 39 other experiential properties across the US and Canada, VICI's portfolio is well-positioned to benefit from the growing demand for entertainment and leisure activities. This diversification reduces the company's exposure to any single sector, enhancing its ability to maintain consistent cash flows and support its dividend payments.

VICI Properties' long-term leases and triple net leases play a crucial role in ensuring consistent dividend payments and growth. These leases, typically lasting 15-20 years, provide stable cash flows, reducing the impact of market fluctuations. Triple net leases, where tenants are responsible for all operating expenses, further enhance VICI's financial stability. This structure allows VICI to maintain a high dividend payout ratio (62.83%) and consistent dividend growth (4.24% TTM, 7.80% 5Y CAGR), making it an attractive dividend stock under $50.

VICI Properties' balance sheet strength and financial flexibility support its ability to maintain and increase dividends over time. As of 2024, VICI Properties has a debt-to-equity ratio of 0.69, indicating a healthy balance between debt and equity financing. This low leverage allows the company to manage its financial obligations effectively and maintain a strong credit rating. Additionally, VICI Properties has a robust cash position, with a cash-to-debt ratio of 0.49, providing it with the financial flexibility to invest in growth opportunities and maintain its dividend payouts.

VICI Properties' dividend growth rate is impressive, with a 5Y CAGR of 7.80% and a 3Y CAGR of 6.33%. This outperforms the industry median of 2.93% and 2.88% respectively. However, its TTM dividend growth rate of 4.24% is lower than its 3Y and 5Y averages, indicating a potential slowdown in growth. VICI Properties' dividend yield has been consistently high, averaging around 5.5% over the past 5 years, with a current yield of 5.92%. Its dividend growth rate has been robust, with a 5-year CAGR of 7.80%. However, its dividend payout ratio is high, at 140.08%, indicating that a significant portion of its earnings is distributed as dividends.



VICI Properties' dividend coverage ratio, which measures the company's ability to pay its dividends from earnings, is 65.06%. This indicates that for every dollar of dividend paid, VICI generates $1.54 in earnings. While this is lower than the industry average of 77.03%, it is still within a healthy range, suggesting that VICI's dividend is well-supported by its earnings.



In conclusion, VICI Properties Inc. (VICI) is a strong contender for the title of the best dividend stock under $50. Its diversified portfolio, long-term leases, and robust financials support consistent dividend payments and growth. However, investors should monitor the company's earnings performance and dividend payout ratio to ensure its dividend remains sustainable. With a high dividend yield, impressive growth rate, and strong fundamentals, VICI Properties is an attractive option for income-oriented investors seeking a dividend stock under $50.