VICI's high dividend yield (7.76%) and low payout ratio (74.3%) make its valuation attractive, potentially offering significant upside if it reverts to historical norms.

Since going public, it has been popular with investors looking for dividend growth and is currently trading at a 52- week low. Well, I'm deciding to put 'VC Properties' on the list today.

This is quite interesting. They own the real estate of many casinos in Las Vegas. They are much more concentrated than companies like O. The stock has fallen 20% in the last 5 years and 25% in the last year, and it just hit a new 52-week low.

But, if we look at dividends, that's exactly why I wanted to talk about it. Its yield or dividend rate has increased to 7.76%. However, they don't have a very long history of increasing dividends.

They were listed as a public company in 2018. Since then, they have been increasing their dividends every year.

The dividend has increased by 27.78% in the last 5 years. This is a 5% compound annual growth rate. Although this rate has been slowing somewhat , it has been 3.4% over the last 3 years.

This is a 3-year CAGR. And the latest dividend growth rate is 2.2 %. This is not very good.

But to be honest, dividend yields are now becoming quite attractive. 7.76% is the highest in the last 5 years. The average dividend yield at that time was 5.31%. So, this is the one that is giving the highest yield among the stocks I am sharing today. And it is in the 99th percentile of all time.

Only during the peak of the Covid pandemic was the dividend yield higher than this, when it reached 10% , and there were reasons behind that. At that time, many types of REITs (REITs) were severely affected.

So, it's quite intriguing that it's coming back and getting close to that level again.

Now, this is a writ, so you should check the Funds From Operations or FFO for this company. I don't have it added to Dividenddata.com , but with a spoiler alert , I'm working on it behind the scenes.

It will probably be available on the platform in the next few weeks.

But today, we will only look at the free cash flow payout ratio, which also gives a pretty good indication for VICI. It was 74.3% in the last 12 months. This is well below 100% and does not appear to be getting worse compared to the past few years.

The Human Earnings Payout Ratio stood at 69.8% in the last 12 months. This indicates that they have the ability to pay dividends. If we look at the fair value graph of VCI shares, it is now in a deep value position in the future context.

Its median multiple or median rate since going public is 5.19%. This is their median dividend yield. Currently it is 7.76%. If you take the median multiple as the fair value, it seems to be much lower than the fair value.

If it returns to a 5.19% yield , the share price will rise 49.5% from here.

So, this is an interesting time to watch the VCI stock. I wasn't following it very closely. I know about some of the properties they own.

This matter is quite interesting. It is heavily dependent on casinos, many of which are in Las Vegas, and most are experience- based. They also have a racetrack. And they are now diversifying beyond Las Vegas , now having locations in several different places.

And to be honest, the company is constantly growing. Much of this came through the issuance of new shares. This is done to raise money. They have also continuously increased the amount of debt to support their acquisitions.

However, this is quite common for many different REITs.

I haven't really looked into VICI, though, so I don't have any insider information to give you. I know they did a little poorly in their last quarter. But maybe it's worth looking into in more detail, because its valuation is now starting to get interesting.