VICI Properties (NYSE: VICI), the most important on line casino landlord within the US, stated in the present day it’s elevating its quarterly to 39 cents a share, an 8.3% enhance from present ranges.
The transfer elevates the Caesar Palace proprietor’s annual payout to $1.56 a share from $1.44. The gaming actual property funding belief (REIT) yields 4.31%, or greater than triple the dividend yield on the S&P 500 and nicely above the yield on 10-year Treasuries.
The dividend can be payable on October 6, 2022 to stockholders of file as of the shut of enterprise on September 22, 2022,” in accordance with a press release issued by the New York-based firm.
VICI made the announcement after the shut of US markets in the present day. The inventory fell 0.24% Thursday. However it’s up 11% year-to-date, which simply outpaces the broader market, in addition to the broadly adopted FTSE Nareit Fairness REITS Index. The gauge is down 16.68% this yr.
VICI Legacy of Dividend Development
Traders usually flock to REITs for the asset class’s above-average dividends and yields – traits VICI definitely obliges.
The actual property firm was spun off from the previous model of Caesars Leisure in October 2017, and with in the present day’s dividend information, its payout enhance streak is now 5 years. A member of the S&P 500, VICI is the most important experiential landlord within the US and a dominant proprietor of prestigious Las Vegas Strip property belongings.
Via a sequence of latest transactions, not solely does the corporate personal Caesars Palace, it additionally owns the Venetian and almost all the Strip venues operated by MGM Resorts Worldwide (NYSE:MGM). The exceptions are Bellagio and Cosmopolitan.
By means of the just lately accomplished buy of MGM Development Properties, which wrapped up in late April, VICI added almost 41,000 resort rooms and 1.2 million sq. toes of gaming house.
VICI now owns the property belongings of Excalibur, Luxor, Mandalay Bay, MGM Grand, Mirage, New York New York, and Park MGM, in addition to varied regional casinos operated by MGM Resorts.
VICI Dividend Sustainability
Skilled buyers know that whereas an organization elevating its payout is often a great factor, it’s extra vital that the agency has the assets to satisfy present payout obligations and proceed rising the dividend over time.
VICI checks these containers. By means of the aforementioned acquisitions and others, the REIT added a number of new streams of rental revenue. Importantly, the corporate’s contracts with tenants are long-term — usually a decade or extra — and have inflation escalators. Alone, the MGP deal ends in greater than $1 billion in new rental revenue for VICI.
Moreover, VICI stays acquisitive, sustaining a knack for offers massive and small. Final month, the corporate stated it’s shopping for the property belongings of the Rocky Hole On line casino Resort in Flinstone, Md. from Golden Leisure (NASDAQ: GDEN) for $204 million.
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