4. VICI Properties Inc. (NYSE:VICI)
Number of Hedge Fund Holders: 48
Dividend Yield as of February 24: 5.41%
VICI Properties Inc. (NYSE:VICI) is an American real estate investment trust company that mainly invests in casinos and entertainment properties across the US and Canada. The company recently announced its Q4 2024 earnings, with revenues amounting to $976 million, up 4.7% from the same period last year. Net income available to common stockholders declined by 17.8% year-over-year to $614.6 million, with earnings per share dropping 19.2% to $0.58. This decrease was primarily driven by changes in the CECL allowance for the quarter ending December 31, 2024. In addition, the company established a new partnership with Indigenous Gaming Partners (IGP) as part of IGP’s acquisition of PURE Canadian Gaming’s operating assets. The agreement also included an amendment to the existing master lease for these properties.
VICI Properties Inc. (NYSE:VICI) has attracted investor interest with its distinctive business model. While its heavy exposure to the gaming industry might appear risky, casinos have historically shown resilience during economic downturns. The company secures tenants through long-term leases, and the highly regulated nature of the gaming sector makes relocation challenging, adding an extra layer of stability. This approach has enabled VICI to maintain full occupancy since its IPO in 2018, even during disruptions like the COVID-19 pandemic, which impacted the travel, hospitality, and casino sectors. Moreover, many of its leases are linked to the consumer price index (CPI), allowing rental adjustments to keep pace with inflation.
VICI Properties Inc. (NYSE:VICI) ended 2024 with $524.6 million available in cash and cash equivalents. During the quarter, the company paid $456.7 million to shareholders through dividends. Moreover, it has raised its payouts every year since its IPO in 2018, which makes it one of the best stocks to buy for passive income. The company’s quarterly dividend comes in at $0.4325 per share and has a dividend yield of 5.41%, as of February 24.
