VICI Properties Rewards Shareholders With 4% Dividend Hike

Boosting shareholders’ wealth, VICI Properties Inc. VICI recently announced a 4% hike in its quarterly cash dividend to 45 cents per share from 43.25 cents paid out in the prior quarter. The increased dividend will be paid out on Oct. 9 to stockholders of record as of the close of business on Sept. 18, 2025.

The latest dividend rate marks an annualized amount of $1.80 per share compared with the prior rate of $1.73. Based on the company’s share price of $33.50 on Sept. 4, the latest hike results in a dividend yield of 5.37%. The company has increased its dividend six times in the past five years, and its payout has grown 6.8% over the same period. Check VICI Properties’ dividend history here.

Attractive dividend payouts continue to be a key draw for REIT investors, and VICI Properties offers a compelling dividend yield. Since 2018, VICI has maintained an impressive 6.6% annual dividend growth rate, surpassing many competitors in the triple-net REIT space, including Agree Realty Corporation (ADC) and Essential Properties Realty Trust, Inc. EPRT. Per VICI Properties’ presentation, the seven-year dividend CAGRs for Agree Realty Corporation and Essential Properties Realty Trust are 5.3% and 5.2%, respectively.

Is VICI Properties’ Latest Dividend Hike Sustainable?

With a target of distributing 75% of adjusted funds from operations (AFFO) to shareholders, VICI provides a reliable income stream, making it an attractive choice for dividend-focused investors seeking stability and long-term appreciation.

What is encouraging is that this payout rests on a solid and reliable footing as VICI Properties has cemented itself as a premier experiential real estate investment trust (REIT) with a high-quality portfolio of gaming and entertainment assets. With flagship properties like Caesars Palace Las Vegas, MGM Grand, the Venetian Resort Las Vegas and other market-leading gaming and experiential properties across North America, VICI is well-poised for growth amid the resiliency of the American consumer, especially in their demand for experiential activities.

VICI owns 54 gaming and 39 experiential properties in the United States and Canada, all secured by long-term, triple-net leases with an average duration of 40.1 years. The company maintains a 100% occupancy rate, underscoring the mission-critical nature of its properties to tenants who face significant regulatory and financial hurdles if they attempt to relocate. This ensures VICI receives stable rental income, providing a strong foundation for consistent dividend payments.

A major factor in VICI’s dividend sustainability is its lease structure. As of 2024, 40% of its rent roll is CPI-linked, with expectations that this will increase to 90% by 2035. This inflation-linked rent growth helps the company maintain purchasing power and revenue expansion, even in inflationary environments. Additionally, 74% of VICI’s rent roll comes from S&P 500 tenants, enhancing income stability and creditworthiness.

Since its inception in 2017, VICI has expanded its adjusted EBITDA by 377%, growing beyond gaming properties to include experiential assets like Chelsea Piers and Bowlero. This diversification reduces sector-specific risks and enhances revenue reliability. Moreover, the company enjoys financial resilience with $3 billion in liquidity as of June 30, 2025, giving it ample financial flexibility to navigate market fluctuations. The company’s last quarter annualized net leverage ratio stood at 5.2, within its long-term target range of 5.0-5.5.

Conclusion

With ample financial flexibility, VICI Properties remains well-poised to respond to any challenges and bank on growth opportunities. Moreover, with a solid operating platform, opportunities for growth and a decent financial position compared to the industry, we expect the latest dividend rate to be sustainable.

VICI Stock Price Performance and Zacks Rank

Here’s how shares of VICI, ADC and EPRT have performed so far in the year.

YTD Price Performance

Currently, VICI Properties has a Zacks Rank #2 (Buy), while Agree Realty Corporation and Essential Properties Realty Trust each carry a Zacks Rank of 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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