When investors think of the most well-known businesses in the world, chances are that they are S&P 500 index components. This is because the 500 components of this index are the most dominant companies in their respective industries.

A $10,000 investment in the S&P 500 index five years ago would have turned into a respectable $17,080 with dividends reinvested. What investors may not know is that a newcomer to the index since June 2022, Vici Properties (VICI -0.22%), has done even better: A $10,000 investment made in the stock five years ago would now be worth $20,260 with dividends reinvested.

However, the returns of yesterday aren't going to help prospective investors who missed out on these returns. The real question is whether shares of the real estate investment trust (REIT) are still a buy. Let's sift through the company's fundamentals and valuation to find out.

Vici has a portfolio loaded with legendary properties

Even if you've never been to one of Vici's properties, it's a safe bet that you have heard of many of them. The company's portfolio of 50 properties, 60,000-plus hotel rooms, and hundreds of restaurants spans 15 U.S. states and the Canadian province of Alberta. The most recognized properties under its ownership include Caesars Palace Las Vegas, The Venetian Resort, and Borgata in Atlantic City, New Jersey.

A survey conducted a few years ago by advertising agency Momentum Worldwide found that 3-out-of-4 consumers (76%) preferred to spend their money on experiences over material possessions. Given the reputation of Vici's properties for providing lifelong memories, it's not hard to understand why millions of people visit its properties each year.

This potent one-two punch helps tenants of the REIT to make money hand over fist, which explains how Vici has collected 100% of its rent since its founding six years ago. After all, tenants with the means to pay rent almost always end up doing so. It's no wonder that tenants are confident enough to sign triple-net lease terms that exceed 40 years in duration, with most of these leases (96%) poised to be tied to inflation by 2035.

Due to these factors, Vici has delivered robust adjusted funds from operations (AFFO) per share growth. If its forecast for $2.125 AFFO per share for 2023 at the midpoint plays out, Vici will have grown AFFO per share by nearly 50% since 2018. And with AFFO per share projected to grow by around 10% this year, that growth isn't showing signs of slowing, either.

A person playing slot machines at a casino.

Image source: Getty Images.

Vici Properties' whopping dividend has room to grow

Vici's 5% dividend yield is highly enticing in comparison to the 1.5% yield of the S&P 500 index. Better yet, the company has increased its quarterly dividend per share by between 8.3% and 10.9% in each of the last three years.

Considering its growth forecast for 2023, it would be a surprise if the company didn't continue this impressive payout growth trajectory with its next dividend raise slated for next month. This is because using Vici's target payout ratio of 75% and guidance for the current year, the quarterly dividend per share for the fourth quarter could be $0.42 -- a 7.7% dividend hike.

An excellent buy for income and moderate growth

As interest rates have surged and made REITs a less attractive investment option, Vici's shares have retreated 9% in the past 12 months. Coupled with growing AFFO per share, this has pushed the stock's current-year price-to-AFFO ratio down below 15. This arguably makes the stock a buy for investors who desire a mix of income and growth potential at the current $31 share price.