Real Estate REIT VICI Properties Inc.

VICI announced a 10.9% increase in their quarterly dividend.

VICI recently announced an eleven percent increase in their dividend. This type of increase is unusual, but I do like investments with rising dividends, so I will take it. VICI doesn’t have a lot of history, as it was founded in 2016. The headquarters is in a city I don’t really care for: Las Vegas. Furthermore, there are some aspects of some of the VICI portfolio of properties that are not experiences I find attractive. More on that in the next paragraph. However, VICI is a Large-Cap hotel and entertainment REIT. The quality of their properties is undeniable.

What I Dislike about VICI

I am not a fan of gambling and some of the things that accompany gambling. Truth be told, just about every company in our portfolio has elements that are either disappointing or less than desirable from a Christian worldview. If every decision was based on complete agreement with the world’s standards, I might only buy shares in a ridiculously small handful of companies. Furthermore, that would complicate the purchase of mutual funds and ETFs, as most of them would have at least a few bad actors. For example, Vanguard’s excellent REIT ETF contains VICI. If you are opposed to gambling, then VICI and VNQ would be difficult choices as an investor.

What I like about VICI

There are aspects of the VICI portfolio that I like. They have quality hotels, restaurants, and golf courses in their portfolio. Their portfolio is geographically diverse. It isn’t just a collection of Las Vegas properties. Their AFFO is solid.

Use REITNOTES to learn more about FFO and AFFO.
It is rare to see an investment rated “Very Bullish” by all three ratings factors.

Be Careful When You Judge: Double Standards

Do hou own sin stocks? Be careful how you answer this question.

There are, of course, some companies that I would prefer to avoid in my portfolio. For example, I prefer not to invest in tobacco companies. However, if we are going to be realistic, Altria Group Inc (ticker MO) is a tobacco company. While I don’t own shares of MO, I do own shares of DVY and VYM.  Both of those ETFs own shares in MO. So do over 100 other ETFs and probably an equal number of mutual funds. So be careful about being too pleased with yourself, or self-righteous, if you avoid certain companies as investments. When you live in a fallen world, there will be fallen businesses. There will be corrupt and self-serving CEO’s. There will be causes the companies support you cannot support.

The popular ETF VNQ holds shares of VICI. Use ETFChannel for more information.

Understand Sin Stocks

Sin stock investments are investments in companies involved in “unethical” activities like alcohol, tobacco, gambling, entertainment, gasoline, oil, violet video games, or weapons. Ethical investors tend to exclude sin stocks, as the companies involved are thought to be making money from exploiting human weaknesses and vices. Even a good companies like Wal-Mart, Apple, Target, and your local quick market exploit human weaknesses: credit card debt and buying things you don’t really need at prices that may not make sense. If you are a vegetarian, that might change your investing choices as well.

Full Disclosure

I have 200 shares of VICI in my traditional IRA.