VICI Properties Inc. (NYSE:VICI) gives income investors a straightforward way to invest in casinos, resorts, and other leisure spots. The company uses long-term, triple-net leases, meaning tenants pay property taxes, insurance, and upkeep. That setup leaves VICI collecting steady rental income without having to deal much with the day-to-day costs of running the properties.
That business model paid off in the second quarter of 2026, with VICI reporting solid results. Revenue climbed 5.7% year-over-year to about $1.1 billion, and adjusted funds from operations (AFFO) jumped 7.8% to $679.6 million. AFFO per share rose 4.6% to $0.62, which matters for REIT investors because it’s a better gauge of dividend coverage than traditional earnings.
The net income number, however, wasn’t as rosy. Common-share earnings dropped 39.1% to $526.5 million, mostly due to an adjustment in the allowance for expected credit losses. While that’s worth noting, it doesn’t mean VICI’s rental income actually took a big hit. Investors exploring opportunities beyond traditional income plays may also find some interesting candidates among these 10 Best 52-Week Low Dividend Stocks to Invest In, particularly when looking for stocks whose valuations have come under pressure.
Also read: Billionaire Portfolios: Top 2 Real Estate Stocks With High Dividend Yields
Forward valuation versus the bond market
VICI Properties Inc. has a forward P/E of 7.77x and a trailing P/E of 9.19x. That forward P/E works out to an earnings yield of about 12.9%. On paper, that’s a hefty spread compared to the 10-year U.S. Treasury yield, which has been around 4.1% to 5.1% lately. Of course, the comparison moves around with market conditions.
VICI’s valuation has also come down: according to Yahoo Finance, its forward P/E was 11.6x in June 2025, 9.73x by year-end, and now sits at 7.77x. This drop in valuation could make for an appealing entry point. Still, it’s also a sign that investors want extra compensation for the risks that come with interest-rate changes, leverage, and having a few big tenants.
It’s important to remember that P/E ratios aren’t the best way to judge REITs, since things like depreciation can skew the numbers. For VICI, the outlook for AFFO is much more telling; management is guiding for $2.45 to $2.47 per share in 2026. To make the investment worthwhile, that growth needs to keep coming.
So, use the forward P/E as a rough reference, not as a replacement for digging into AFFO growth and how sustainable it looks. For comparison, Realty Income traded at a forward P/E of 33.67x in September 2026, illustrating how differently conventional P/E ratios can value REITs. Because accounting rules can make earnings look very different across companies, it’s tough to compare REITs just on P/E ratios. AFFO multiples and growth prospects are much more helpful for sizing up value. The same principle applies when screening beaten-down dividend stocks: a low valuation can catch the eye, but the underlying business and the sustainability of its payout matter just as much. That’s worth keeping in mind when reviewing these 52-week low dividend stocks.
Dividend coverage and the risks ahead
VICI’s annual dividend is $1.84 per share, and it offers a quarterly dividend of $0.46 per share, as seen in its latest 2.2% increase. This marked the company’s 8th consecutive year of dividend growth. The dividend works out to a yield of about 7.8% with the stock trading at $23. Looking at the projected AFFO for 2026, the dividend payout ratio lands at around 73% to 73.5%. That’s a decent cushion for a REIT, though things like new acquisitions, borrowing costs, and future rent payments are still important to watch.
The main risks are higher refinancing costs, tenants running into financial trouble, and slower rent growth if built-in rent increases can’t keep up with inflation. VICI also finished the second quarter with $17.2 billion in debt, so keeping borrowing costs under control will be crucial for future returns.
Find VICI among 10 Best Dividend Stocks Yielding at Least 5% to Buy According to Hedge Funds
Bottom line
VICI offers a strong income stream and is trading below its own recent valuation levels. The dividend looks well-supported by AFFO, but remember, a nearly 13% forward earnings yield isn’t locked in, and the higher yield versus Treasuries is meant to make up for the risks that come with owning real estate stocks. For income investors, the real test will be whether VICI can keep growing AFFO per share and manage its finances carefully—not just relying on a big dividend yield.
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This article is originally published at Insider Monkey.
