VICI Properties (VICI 0.11%) has risen like a phoenix out of the ashes. Bankrupt casino operator Caesar's Entertainment initially formed the real estate investment trust (REIT) in late 2017, and it went public in early 2018. It has grown into the largest REIT focused on owning experiential real estate.
Here's a look at how much dividend income you'd have collected if you bought 100 shares of the REIT when it went public eight years ago.
Image source: Getty Images.
VICI Properties priced its IPO at $20 a share in early 2018. At that price, it would have cost about $2,000 to purchase 100 shares right around the time it went public.
The REIT started paying dividends right away. It paid a pro-rated dividend of $0.16 per share for the first quarter of 2018, based on a $0.2625 quarterly rate. VICI Properties would go on to raise the quarterly dividend to $0.2875 per share for the third quarter. As a result, an investor would have collected $99.75 in dividend income that first year.
NYSE: VICI
Key Data Points
VICI Properties has grown its dividend at a 6.6% compound annualized rate since the end of 2018, driven by rising rental rates and new investments. That's triple the dividend growth rate of similar REITs. Here's how much dividend income those 100 shares would have generated since VICI's IPO (assuming no dividend reinvestment):
|
Year |
Annual Dividend Income |
Cumulative Dividend Income |
|---|---|---|
|
2018 |
$99.75 |
$99.75 |
|
2019 |
$117.00 |
$216.75 |
|
2020 |
$125.50 |
$342.25 |
|
2021 |
$138.00 |
$480.25 |
|
2022 |
$150.00 |
$630.25 |
|
2023 |
$161.00 |
$791.25 |
|
2024 |
$169.50 |
$960.75 |
|
2025 |
$176.50 |
$1,137.25 |
|
2026 |
$45.00 |
$1,182.25 |
Data source: VICI Properties. NOTE: 2026 includes dividends paid through the first quarter.
The cumulative dividend income over the past eight years is nearly 60% of an investor's original investment.
The REIT's dividend should continue rising in the future, driven by built-in rental escalation clauses and new investments. That makes VICI Properties an attractive way to make passive income from real estate.
