VICI Properties: Investment-Grade 6.8% Yield At A 5-Year Low

VICI Properties trades at a 5-year low despite robust AFFO growth, a 6.8% dividend yield, and a 7% dividend CAGR over the last 8 years. VICI maintains 136% dividend coverage with AFFO per share guidance raised to $2.44–$2.47, supporting a likely dividend hike by September. VICI's valuation at 10.9x AFFO and investment-grade rating are being overshadowed by market fears over its Caesars tenant concentration and the Fertitta buyout. I rate VICI a strong buy, expecting double-digit total returns on the back of its fully covered yield and pending dividend hike.

VICI Properties (VICI) has dipped and then dipped again over the last 1 year on the back of a confluence of fears that has ripped apart a previously buoyant bull case built around