Exploring the Dividend Profile of VICI Properties Inc
VICI Properties Inc (NYSE:VICI) recently announced a dividend of $0.42 per share, payable on 2024-04-04, with the ex-dividend date set for 2024-03-20. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into VICI Properties Inc's dividend performance and assess its sustainability.
This Powerful Chart Made Peter Lynch 29% A Year For 13 Years
How to calculate the intrinsic value of a stock?
VICI Properties Inc is a real estate investment trust based in the United States. It engaged in the business of owning and acquiring gaming, hospitality, and entertainment destinations, subject to long-term triple net leases. The company's operating segments are real property business and golf course business. The Real property business segment consists of leased real property whereas the Golf course business segment consists of several golf courses. Its golf courses include the Cascata Golf Course, the Rio Secco Golf Course, the Grand Bear Golf Course, and the Chariot Run Golf Course.
VICI Properties Inc's Dividend Analysis
A Glimpse at VICI Properties Inc's Dividend History
VICI Properties Inc has maintained a consistent dividend payment record since 2018. Dividends are currently distributed on a quarterly basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
VICI Properties Inc's Dividend Analysis
Breaking Down VICI Properties Inc's Dividend Yield and Growth
As of today, VICI Properties Inc currently has a 12-month trailing dividend yield of 5.59% and a 12-month forward dividend yield of 5.75%. This suggests an expectation of increased dividend payments over the next 12 months. Over the past three years, VICI Properties Inc's annual dividend growth rate was 8.70%. Extended to a five-year horizon, this rate increased to 9.70% per year. Based on VICI Properties Inc's dividend yield and five-year growth rate, the 5-year yield on cost of VICI Properties Inc stock as of today is approximately 8.88%.
VICI Properties Inc's Dividend Analysis
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, VICI Properties Inc's dividend payout ratio is 0.65.
VICI Properties Inc's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks VICI Properties Inc's profitability 7 out of 10 as of 2023-12-31, suggesting good profitability prospects. The company has reported net profit in 9 years out of past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. VICI Properties Inc's growth rank of 7 out of 10 suggests that the company's growth trajectory is good relative to its competitors. Revenue is the lifeblood of any company, and VICI Properties Inc's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. VICI Properties Inc's revenue has increased by approximately 14.00% per year on average, a rate that outperforms approximately 84.04% of global competitors. The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, VICI Properties Inc's earnings increased by approximately 10.30% per year on average, a rate that outperforms approximately 61.28% of global competitors. Lastly, the company's 5-year EBITDA growth rate of 6.50%, which outperforms approximately 66.48% of global competitors.
Concluding Insights
In conclusion, VICI Properties Inc's upcoming dividend payment, consistent history of dividend growth, reasonable payout ratio, and solid profitability and growth metrics paint a promising picture for value investors focused on income-generating stocks. These factors combined suggest that VICI Properties Inc's dividends are not only sustainable but also poised for potential growth, aligning with the interests of shareholders seeking reliable and increasing income streams. With the company's robust financial health and growth prospects, investors may find VICI Properties Inc an attractive option for their portfolios. Will VICI Properties Inc continue to be a dividend champion in the years to come? Only time will tell, but current indicators suggest a positive trajectory.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
