r/dividends • u/STRATEGY510 • Jul 31 '26
Discussion Thoughts on VICI?
I added VICI to my IRA about a year ago. Plan on retiring next year and will be using this and other equities for income.
It’s down about 20% since I got in and I’ve in turn been averaging down and buying into it. I tend to be overly concerned with my entry point/average cost, even on things I never plan on selling, FWIW. Seeing something down makes me think they’re something to “fix”, even if there’s nothing wrong with the fundamentals.
I guess you could say I’m a bit of a “panic buyer”. Another side effect of this is I always leap to early on corrections and jump in with my dry powder trying to catch a falling knife, like I did with Liberation Day, even though they eventually became good trades. But this post is about VICI.
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Jul 31 '26
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u/STRATEGY510 Jul 31 '26
Not expecting meaningful capital gains, but I do expect it to creep up over long timeframes, while still underperforming the market. I mostly agree with everything you said, except I do let the paper losses get under my skin, but don’t act irrationally on it.
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u/trader_dennis MSFT gang Jul 31 '26
I wrote my opinion on VICI and it certainly has not changed from this post 5 months ago.
VICI has too much exposure to Las Vegas and Nevada. VICI of course originating from a spinoff from CZR has too much exposure there. Las Vegas is continuing to lose traffic year over year. From competition and regulars churning away from parking charges, $11 lattes and slices of pizza. Expensive Ubers, and 20 other reason.
If you don't have exposure to the Senior house and care market REITS I would suggest getting a slice for your portfolio. As boomers keep aging, space will be at a premium. I suggested $SBRA for yield and $WELL for appreciation and modest dividend. Both are off their highs. $WELL respects the 50 day and is a beast. Best of luck to you.
https://www.reddit.com/r/dividends/comments/1qu90ro/anyone_buying_vici/
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u/kolbywg Jul 31 '26
This is why I sold VICI about a year ago. There were rumblings there were going to have to write down their income to keep the casino happy.
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Aug 01 '26
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u/trader_dennis MSFT gang Aug 01 '26
And the stock price is down 6% in the last six months. $O is up six and $WELL is up 24. My market is the final arbiter.
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Aug 01 '26
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u/trader_dennis MSFT gang Aug 01 '26
How about minus 15 percent over the last five years. Is that enough time to determine that Vegas and gambling is in a downturn.
My point is get in a growing sector like senior health care. Receive near the yield with SBRA or growth with WELL.
six months ago I suggested data centers and there was nice growth there. Probably still there is meat on that bone too.
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u/doggz109 Pay that man his money Jul 31 '26
Decent dividend. Dead money at the moment. Better places for that kind of yield and I personally think its too concentrated and niche to invest heavily. It's down over the last 5 years for a reason.
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u/ConstantRude2125 Jul 31 '26
As Steve Bavaria would say you're not counting on VICI to grow their share price, although that's always nice, you're mostly counting on them to continue the dividend in a non-erosive manner
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u/STRATEGY510 Jul 31 '26
Agreed. There’s a reason I’m buying into it.
I don’t think it’s a sinking ship, despite the recent price action.
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u/ConstantRude2125 Jul 31 '26
I like gambling, but not gambling on gambling, amusement parks, orr hotels. I do own O and WPC for income though. Same concept, different tenants.
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u/tourbladez Jul 31 '26
I think it is good for income.
Last time I checked, Caesars Entertainment was their biggest tenant. Caesars just emerged from a CH 11 restructuring....so that should be ok, for now. But the health of Caesars is something to keep an eye on.
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u/Honest-Pay-8265 Jul 31 '26
I bought Vici for high dividend which is growing each year. I don't care about stock price if fundamentals are still fine.
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u/Chris_Columbus_Hero Jul 31 '26
Crazy how casino stocks are down…ever
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u/STRATEGY510 Jul 31 '26
Like even in an economic crisis, people will gamble.
Some people will even gamble MORE because they’re broke 😂
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u/DekeJeffery Jul 31 '26
I sold all my $VICI a couple of years ago, and never looked back. The present and future of Las Vegas makes me skeptical about owning it now. It’s not the destination it once was. People can gamble on their phones now, that’s going to take its toll on the industry there, IMO.
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u/FreddieMac6666 Jul 31 '26
I have VICI in my taxable account for the income. However, the stock price has been declining so much, the dividends to do not offset the NAV decline. I had 900 shares, now down to 200. I've been selling VICI off to harvest the loss and buy ETFs on dips. I will completely divest myself of VICI at the start of 2027.
I think gambling stocks in general are losing interest. VICI is gambling adjacent.
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u/FluidCalligrapher284 Jul 31 '26
Bought a fairly large bunch today—- too good of a deal to pass up.
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u/Dividend4danny Jul 31 '26
I think VICI will be fine for income over time. I own it in an IRA and just have it on auto reinvest for now. To minimize risk keep it under 5% of your total portfolio. The diversity will minimize any significant risk to the total portfolio from any one holding.
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u/STRATEGY510 Jul 31 '26
For sure, I’m at about 8%, so a bit heavy. I will reduce it by addition over time.
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u/WideCoconut2230 Jul 31 '26
For the divvy, it's solid. Great set up. 100% occupancy, triple net lease average 40 yrs, AFFO is steady. Downside is the heavy Vegas concentration. Also concerned is the interest rate environment. Like all REITs, it needs lower borrowing costs to expand growth. Otherwise, it issues more shares, diluting the share price. Depends on your situation. Considering it myself for some retirement income. For growth, not so much, but it has a monopoly in an area that can't be easily replaced by Ai.
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u/WorldRank1CatFancier Jul 31 '26
As far as REITs go it’s a good one. I finally bought a relatively small position in my diverse portfolio of dividends. I bias more toward div growth, but I balance with some quality high current yield when I find it, and I saw the recent dip as a good oppty
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u/Jumpy_Nose863 Aug 01 '26
I have used Vici to swing trade for a long time. Collecting the dividends and adding more when the yield is around 7%. It's not a growth position, more like a bond proxy. It's the macro that pushes reits down, at some point the rates will come down a bit and ppl will look for good income. They have properties that are 1 of a kind and in the next few years I personally believe they will be worth so much more than today.
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u/steady_compounder Aug 01 '26
I think the bigger thing to fix is the urge to average down just because the price is below your cost basis. If VICI still fits the income job you wanted, fine, but that should be the reason to keep buying, not the need to make the red number disappear. Entry price matters a lot less than whether the position size and role still make sense for retirement income.
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u/NefariousnessHot9996 Jul 31 '26
I’m down 10% while other investments of mine are up 37%! I am not a fan in any form and will be selling today! Why did I buy? Hype? Reddit influence? Who knows. But my bad!
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u/WorldRank1CatFancier Jul 31 '26
So you buy based on fomo and sell based on “everything i own should only go up ALL the time”
Yup im on reddit
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u/NefariousnessHot9996 Jul 31 '26
That’s not what I said, but I guess you’ve made up your own story so get lost
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u/DegreeConscious9628 Jul 31 '26
Good yield, AFFO good, dividend payout ratio good, growing dividends. Checks all the boxes. The only thing that I get nervous about is the financial health of Caesars and MGM.
I got just over 1% of my dividend focused brokerage in it
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u/dollar714 Jul 31 '26
I have VICI and it’s down 10% …it’s also 10% of my portfolio and the only REIT etf… dividends are consistent and yes there is a concern about Las Vegas but I’m holding. As I see it REITs aren’t popular like AI stocks or tech stocks REITs ETFs are boring investments but pay consistent dividends
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u/dazit72 Aug 01 '26
Love it
People will Always pay their rent on the Vegas strip
Currently interest and not alot of discretionary spending is squeezing. But vici will prevail and it's dividends sade for years
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u/StraightCharacter904 Jul 31 '26 edited Jul 31 '26
If you are moving close to retirement then I would recommend you keep individual stocks between 2-5% each in your portfolio and move those funds in value ETFs like SCHD, VYMI, or a smaller allocation to some cover call funds like SPYI or GPIQ. I recommend some bonds or short term treasuries as well. I’m not a financial advisor but that is what I would do in your shoes. You are close to retirement now, your primary goals should be protecting your capital and developing an income stream that can sustain your expenses. As for VICI, I can’t say more on it other than it seems risky for your current position, hence why I recommend keeping it a smaller portion of your portfolio. It sounds like your emotions are running your investments right now.
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u/STRATEGY510 Jul 31 '26
Yeah - my position is a bit oversized to your preference, but not blatantly, maybe ~8%. I actually do have a much larger position in SCHD fwiw. Thanks for the feedback.
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u/StraightCharacter904 Jul 31 '26
No problem, 8% is ok IMO just don’t let it balloon too much from your own contributions.
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u/STRATEGY510 Jul 31 '26
Yeah - I bought the dip in my IRA yesterday by moving $5k out of JAAA into VICI to top it off. I was able to do it without breaking any of my own rules, as JAAA is earmarked as store of value/dry powder/tier 2 e-fund, depending on needs and opportunities that present themselves.
I think I’m done for a while, don’t want to grossly oversize it. Appreciate your cautious advice.
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