VICI Properties trades at a multi-decade low valuation, offering a 6.5% yield and strong AFFO growth prospects. Current market concerns—Las Vegas tourism declines and Caesars regional softness—are overstated due to VICI's resilient triple-net lease structure. VICI's forward AFFO payout ratio of 74.4% and CPI-linked rent escalations support sustainable and growing dividends.
Fidelity's 'new income ideas' highlight unconventional assets like convertible bonds and emerging market debt for income and diversification. iShares J.P.Morgan USD Emerging Market Bond (EMB) offers a 5.5% yield, diversifying across investment-grade and non-investment-grade sovereign debt. Oil tanker stocks such as Nordic American Tankers (NAT) yield around 11%, but face volatile returns and in...
Not all REIT property sectors are equally attractive. Some are oversupplied and expensive, even as others enjoy steady growth and trade at low valuations. I highlight my three favorite property sectors going into 2026.
Las Vegas remains resilient, but its growth trajectory is decelerating from the double-digit rates seen at VICI Properties' market debut. VICI faces a transition from rapid expansion to a more moderate, sustainable pace of growth. Investors should recalibrate expectations as VICI's future returns may align more closely with sector averages.
REITs remain attractively valued, with many trading at near 10-year high dividend yields. AFFO yield plus AFFO growth is utilized as a scoring system in this article. ARE leads in value but faces risks from declining occupancy and potential AFFO contraction. Others in the top 5 include VICI, IRM, EQIX and PSA.
VICI Properties and Gaming and Leisure Properties offer yields above 6% and 7%, respectively, underpinned by strong cash flows and fundamentals. VICI trades at an attractive 11.8x P/AFFO, below sector median, with robust liquidity, 8th consecutive dividend increase, and a well-covered 75% AFFO payout ratio. GLPI boasts a lower 10.78x P/AFFO, solid 4.4x leverage, no debt maturities until 2027, a...
Negative investor sentiment about casino stocks has weighed on VICI Properties; however, this casino REIT, which yields 6.1%, may be relatively immune to a severe downturn. Verizon Communications' recently announced turnaround plan could lead to improved results for the telecom giant, which has a forward dividend yield of 6.75%.
Higher interest rates over the past few years have weighed on REIT share prices. Rates could continue falling in 2026.
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