5 Best REIT Stocks to Buy Right Now

2. VICI Properties Inc. (NYSE:VICI)

Dividend Yield as of October 24: 5.19%

VICI Properties Inc. (NYSE:VICI) is New York-based REIT that specializes in casino properties. Recently, the company came into an agreement with Canyon Ranch to develop its wellness resort worth over $200 million. The project will be completed by 2025.

VICI Properties Inc. (NYSE:VICI) has been raising its dividends consistently for the past four years. The company’s strong cash generation signals further dividend growth. It currently pays a quarterly dividend of $0.39 per share and has a dividend yield of 5.19%, as recorded on October 24.

In August, JMP Properties initiated its coverage on the stock with an Outperform rating and a $38 price target. The firm acknowledged the company’s enhanced investment activity and credit profile of its portfolio.

At the end of the June quarter, 26 hedge funds tracked by Insider Monkey owned stakes in VICI Properties Inc. (NYSE:VICI), compared with 36 in the previous quarter. The combined value of these stakes is nearly $288 million.

Meridian Funds mentioned VICI Properties Inc. (NYSE:VICI) in its Q2 2022 investor letter. Here is what the firm has to say:

“VICI Properties Inc. (NYSE:VICI) is a real estate investment trust company specializing in casinos and other entertainment properties. We invested in VICI in 2018 when earnings were declining due to dilutive acquisitions. Our thesis was that, as investors grew more comfortable with casinos as a REIT subsector, the value of their properties would increase. We also liked the defensive characteristics of the company, specifically the triple-net lease structure, which dictates that lessees pay all maintenance and capital expenditures, and the history of casino REITs with zero rent payments missed by casinos during either the global financial crisis or the 2020 pandemic. Furthermore, we were confident that VICI’s growth prospects would increase as more casinos monetized land holdings with VICI’s ability to use its extensive cash and liquidity to make acquisitions. VICI’s stock outperformed in the quarter due to its appeal as a fairly defensive investment and the news that it would be included in the S&P 500 Index. We maintained our position in VICI.”