VICI Properties Inc's Dividend Analysis
Understanding VICI Properties Inc's Dividend Dynamics
VICI Properties Inc (NYSE:VICI) recently announced a dividend of $0.42 per share, payable on 2024-01-04, with the ex-dividend date set for 2023-12-20. 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.
What Does VICI Properties Inc Do?
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VICI Properties Inc is a real estate investment trust based in the US. It acts as an owner, acquirer, and developer of real estate assets across gaming, hospitality, entertainment, and leisure destinations. The company's operating segments are real property business and golf course business. The Real property business segment consists of the 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.
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.
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 5.07% and a 12-month forward dividend yield of 5.32%. 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 8.60%. 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 5.07%.
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 2023-09-30, VICI Properties Inc's dividend payout ratio is 0.66.
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 8 out of 10 as of 2023-09-30, suggesting good profitability prospects. The company has reported net profit in 8 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 8 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 13.20% per year on average, a rate that outperforms approximately 87.03% 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 -2.10% per year on average, a rate that outperforms approximately 41.28% of global competitors.
Lastly, the company's 5-year EBITDA growth rate of 34.60%, which outperforms approximately 91.78% of global competitors.
Investing in VICI Properties Inc: A Dividend Perspective
When considering VICI Properties Inc's dividend payments, dividend growth rate, payout ratio, profitability, and growth metrics, investors are presented with a mixed yet promising picture. The company's consistent dividend history, robust yield, and notable growth rate speak to its potential as a valuable addition to a dividend-focused portfolio. Coupled with a reasonable payout ratio and strong profitability rank, VICI Properties Inc appears to be on a sustainable path, with growth metrics that could support future dividend increases. As value investors seek to make informed decisions, VICI Properties Inc stands out as a company worth monitoring. Will VICI Properties Inc continue its trajectory of dividend growth and financial stability? Only time will tell, but the indicators suggest a positive outlook.
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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.
This article first appeared on GuruFocus.
