Generating passive income is an important part of my investing strategy. My goal is to eventually make enough passive income each month to offset all of my family’s regular expenses. This will give my wife and I more financial and time flexibility.
My core strategy is investing high yield stocks Steady increase their expenditure. Weixi Real Estate(NYSE:VICI) Definitely fits the bill. Here’s why I’ve been buying more REIT stocks lately (REIT), this is my third purchase in the past two months and will likely continue to do so in the coming months.
Weixi Real Estate’ dividend yield It currently exceeds 5.9%. This is much higher than S&P 500 Index1.2% of yield. The stock is trading near its highest level in the past five years, in part because its shares have fallen about 8% over the past year and are down more than 14% from recent highs.
REIT high-yield dividends have begun very firm Base. One factor driving this view is the overall stability of its rental income, driven by its high-quality property portfolio. Vici Properties owns 54 gaming properties and 39 other experiential properties in the United States and Canada, which are leased to quality operators through long-term triple-net leases (neural network) Agreement. Its properties are critical to the operations of its tenants, which is why it continues to charge 100% of contract rent.
Vici Properties pays out approximately 75% of its adjusted funds from operations (FFO) dividends. That gives it a big cushion while allowing it to retain cash to help fund new investments. Weixi Real Estate also Having a solid investment-grade balance sheet gives it additional financial flexibility.
Vici Properties increases dividend each year Since it was made public; 2024 is the seventh year in a row. It earned investors 4.2% last year, and its dividends have grown 7% annually since going public, well above the 2.2% average for other REITs focused on owning assets. neural network real estate.
The REIT is well-positioned to continue growing dividends in the future. One of the drivers of growth is rising rents. Currently, approximately 40% of its leases have rents indexed to inflation. Given the current lease structure, this proportion will increase to 90% by 2035.
Acquisitions are a bigger growth driver for REITs. Over the years, it has made many transactions, allowing it to grow into the world’s leading gaming and experiential real estate investment trust. It owns several iconic casinos on the Las Vegas Strip and elsewhere in 15 states and 1 Canadian province. REIT also Owns 38 bowling entertainment centers and Chelsea Piers in New York City.
While Vici Properties is already a leader in owning experiential real estate, there’s more to it continue to expand. For example, it has option agreements, or rights of first refusal, to purchase more gaming properties from existing tenants. It can also purchase gaming assets from new operators when opportunities arise.
It has also entered into long-term financing agreements with several experienced real estate developers to fund new properties it can acquire from these partners future. Last year, for example, it agreed to provide up to $105 million in construction loans to Homefield Kansas City to finance the development of the Margaritaville resort in Kansas City. As part of the agreement, Vici Properties was given an option to purchase the project property, A new Homefield Youth Sports Training Facility, a new Homefield Baseball Center and an existing Homefield Youth Sports Center. The REIT has similar financing partnerships with Canyon Ranch, which specializes in wellness resorts; Cabot, Destination Golf; and others.
Vici Properties will also provide capital to its tenants to fund improvements at their existing properties. Last year, it agreed to provide up to $700 million to the Venetian Resort in Las Vegas to renovate hotel rooms, optimize gaming floors and make entertainment and conference center Enhanced functionality. The REIT will recoup this investment through higher property rents.
REITs have the financial capacity to continue growing their portfolios as opportunities arise. These new investments will increase its income, allowing it to continue growing its dividend.
Weixi Real Estate Now discount a very attractive The dividend yield has benefited from its steady growth and the decline in its share price over the past year. REITs should be able to continue growing their dividends future as it expands its portfolio. It should help me reach my passive income goals faster, What’s thisy I can’t stop buying stocks these days.
Before buying shares of Vici Properties, consider the following factors:
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Matt DiLallo is with Vici Properties. The Motley Fool recommends Vici Properties. The Motley Fool has a disclosure policy.
Why I Can’t Stop Buying This Stock with a Dividend Yield of Nearly 6% Originally Posted by The Motley Fool
