With a high dividend yield of over 5.2% and an excellent track record of dividend growth, VICI Properties (NYSE:VICI) stands out as a solid income stock. The firm is a real estate investment trust (REIT) with a market-leading portfolio of gaming, hospitality, and entertainment destinations. Furthermore, Wall Street analysts favor VICI stock, supporting its bull case.
Let’s delve deeper to understand why analysts are bullish about this REIT.
VICI: A Top Income Stock
VICI Properties boasts a high-quality portfolio of real estate assets that generate solid rental income, supporting its payouts. With 54 gaming properties, 38 family entertainment centers, and significant scale and access to capital, VICI is well-positioned for growth. The REIT has boasted a 100% rent collection since its formation, which shows the quality of its tenant base.
Furthermore, VICI Properties benefits from a high occupancy rate and long lease terms, which add stability to its cash flows. Thanks to its solid financial performance, VICI’s dividends have grown at a CAGR of 7.6% since 2018. Meanwhile, its diversified revenue stream and strategic acquisitions suggest that VICI Properties could sustain its payouts in the coming years.
What is the Average Price Target for VICI?
VICI stock has received 12 Buy and two Hold recommendations, translating into a Strong Buy consensus rating. Meanwhile, analysts’ average price target of $34.62 implies 13.47% upside potential from current levels.
Bottom Line
VICI Properties’ diversified and high-quality revenue streams, strong rent collection and occupancy rate, and long-term leases suggest that the firm is poised to enhance its shareholders’ returns through higher dividend payments. Also, its inflation-protected rents, strong balance sheet, and focus on pursuing large-scale acquisitions are positive and reflected via analysts’ Strong Buy consensus rating.
