13 Best Dividend Stocks to Buy Under $50

Page 6 of 11

6. VICI Properties Inc. (NYSE:VICI)

Number of Hedge Fund Holders: 35

Share Price as of the Close of December 20: $28.79

VICI Properties Inc. (NYSE:VICI) ranks sixth on our list of the best dividend stocks under $50. The real estate investment trust company owns casinos and entertainment properties across the US and Canada. The company maintains a robust balance sheet, finishing Q3 2024 with $355.7 million in cash and cash equivalents. This solid cash position has supported the company in increasing its dividend payouts for seven straight years, with a compound annual growth rate (CAGR) of 7% since its IPO. In the latest quarter, the company distributed around $453 million in dividends. It currently pays a quarterly dividend of $0.4325 per share and has a dividend yield of 5.97%, as of December 23.

In Q3 2024, VICI Properties Inc. (NYSE:VICI) reported revenue of $964.6 million, a 6.7% increase compared to the previous year. Net income attributable to common stockholders grew by 31.7% year-over-year, reaching $732.9 million, with a per-share increase of 27.4%, totaling $0.70. AFFO attributable to common stockholders rose by 8.4% to $593.9 million, and on a per-share basis, it increased by 4.9% to $0.57.

In addition to its strong earnings and consistent dividend history, VICI Properties Inc. (NYSE:VICI) has attracted investor attention due to its business model. While its heavy dependence on the gaming sector may seem risky, casinos tend to be resilient during recessions. The company secures tenants with long-term contracts, and the strict regulations in the gaming industry create a protective barrier, making it challenging for tenants to relocate their operations. This approach has allowed Vici to maintain a 100% occupancy rate since its IPO in 2018, even amidst the disruptions caused by the COVID-19 pandemic in the travel, hospitality, and casino industries. Furthermore, most of the company’s long-term leases are linked to the consumer price index (CPI), enabling it to adjust rents regularly in line with inflation.

According to Insider Monkey’s database of Q3 2024, 35 hedge funds held stakes in VICI Properties Inc. (NYSE:VICI), up from 33 in the previous quarter. The consolidated value of these stakes is over $787.6 million. Among these hedge funds, Ken Griffin’s Citadel Investment Group was the company’s leading stakeholder in Q3.

Page 6 of 11