Is VICI a good stock to buy? We came across a bullish thesis on VICI Properties Inc. on Compounding Quality’s Substack. In this article, we will summarize the bulls’ thesis on VICI. VICI Properties Inc.’s share was trading at $28.78 as of April 20th. VICI’s trailing and forward P/E were 11.11 and 10.00 respectively according to Yahoo Finance.
VICI Properties (VICI) is a real estate investment trust (REIT) that owns a diversified and high-quality portfolio of gaming, hospitality, and entertainment properties across 26 U.S. states and one Canadian province, including the iconic Caesars Palace. The company’s portfolio spans 15 states and one Canadian province in gaming, with 51% regional, 48% Las Vegas, and 1% international exposure, while its other experiential properties cover 17 states, six of which also include gaming.
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VICI operates primarily through triple-net leases, meaning tenants cover property taxes, insurance, and maintenance, which has historically resulted in 100% rent collection even during extreme disruptions like the COVID-19 lockdowns. This structure provides highly durable and predictable cash flow, supported by the critical and immovable nature of casino real estate, which is deeply integrated into tenant operations.
VICI generates significant income from these leases, and the business model allows for consistent dividend growth, with current yields around 6.4% and the potential for further increases via annual rent escalators tied to inflation.
The company’s geographic diversification and concentration in market-leading properties, coupled with the structural advantages of its triple-net leases, position it for stable, long-term cash flow generation. Given the portfolio’s scale, quality, and tenant alignment, VICI presents an attractive income-oriented investment with durable cash flow, high current yield, and potential for ongoing dividend growth, benefiting from both the resilience of its tenants and the essential nature of its real estate assets.
Previously, we covered a bullish thesis on STAG Industrial, Inc. (STAG) by Steve Wagner in May 2025, which highlighted the company’s strong first-quarter performance, double-digit net income growth, disciplined capital allocation, and high-quality industrial portfolio with robust leasing spreads. STAG’s stock price has appreciated by approximately 20.55% since our coverage. Compounding Quality shares a similar view but emphasizes VICI Properties’ focus on triple-net leases in gaming and hospitality REITs, providing durable cash flow and high dividend yield.
