📈 I'm deciding between two REITs, which one do you choose? 🚀
🔍 $VICI-0.3% vs. $O+0.1%: Which one is more attractive to you ?
💹 Vici Properties Inc. $VICI-0.3% 🍀
VICI is one of the key players in real estate investing, with an emphasis on the entertainment and hospitality sectors. Their portfolio includes attractive properties such as casinos, hotels and resorts that provide stable and diversified income.
VICI Properties Inc.
VICI
VICI Properties Inc.
VICIDividend yield: 5.3% - quarterly dividend payment
Payout: 75%
Average annual dividend growth over the past five years: 10%
AFFO year-on-year: 7%
P/AFFO: 14
Total debt: $18 billion
Cash: $511 million.
💹 Realty Income Corporation $O+0.1% 🏢
Realty Income Corporation, excels in real estate investments, with a primary focus on stable and growing rental income. Their portfolio includes a variety of properties, primarily commercial space.
Dividend yield: 5.6% - monthly dividend payment
Payout: 76%
Average annual dividend growth over the past five years: 4%
AFFO year-on-year: 9%
P/AFFO: 14
Total debt: $21 billion
Cash: $344 million.
Of the REIT sector, these are the only two I have and want. If it was just about attractiveness, I'd go with VICI, but given some stability in fundamentals, etc., I'd go with O. REITs are pretty well represented in my portfolio. I have a larger amount of money in O, but right after that is VICI where I also have little. I'm looking forward to when the Fed starts cutting rates :D
I only know these companies superficially, but when I look at $O+0.1% for example, it has a strong underperformance compared to the sp500, and it certainly doesn't include the dividend tax. Over a 10 year horizon the index has delivered over 100% better appreciation (in my opinion) with less risk.
Any thoughts on why this is the case and why it should possibly change?
I own both companies and would not change. And the minute 0 goes back to 50, I'll throw something in there again.