12 Best 5% Dividend Stocks To Buy According To Hedge Funds

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5. VICI Properties Inc. (NYSE:VICI)

Number of Hedge Fund Holders: 35

Dividend Yield as of February 5: 5.76%

VICI Properties Inc. (NYSE:VICI) ranks fifth on our list of the best dividend stocks with over 5% yield. The real estate investment trust company owns casinos and entertainment properties across the US and Canada.

VICI Properties Inc. (NYSE:VICI) has garnered investor interest due to its unique business model. Despite its significant reliance on the gaming sector, which may seem risky, casinos typically perform well during recessions. The company locks in tenants with long-term contracts, and the strict regulations in the gaming industry make it difficult for tenants to move their operations, providing added security. This strategy has allowed Vici to maintain a 100% occupancy rate since its 2018 IPO, even amid disruptions like the COVID-19 pandemic that affected the travel, hospitality, and casino industries. Additionally, many of its long-term leases are tied to the consumer price index (CPI), allowing the company to adjust rents in response to inflation.

VICI Properties Inc. (NYSE:VICI) has a strong financial position, ending Q3 2024 with $355.7 million in cash and cash equivalents. This healthy cash balance has enabled the company to raise its dividend payouts for seven consecutive years, with a compound annual growth rate (CAGR) of 7% since its IPO. In the most recent quarter, the company paid out approximately $453 million in dividends. It currently offers a quarterly dividend of $0.4325 per share and has a dividend yield of 5.76%, as of February 5.

Insider Monkey’s database of Q3 2024 showed that 35 hedge funds held stakes in VICI Properties Inc. (NYSE:VICI), up from 33 in the previous quarter. These stakes have a consolidated value of more than $787.6 million.

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