Rising Above the Noise: A Smart Investment Opportunity
The COVID-19 pandemic brought unprecedented challenges to the global economy, leading to a surge in inflation. This perfect storm of clogged ports, economic stimulus, and supply chain disruptions sent investors and savers scrambling for cover. In response, the Federal Reserve swiftly raised interest rates to combat inflation, causing fixed-income investments like bonds, CDs, and U.S. Treasuries to yield over 5% – the highest in years.
A New Reality Unfolds
Fast-forward to today, and inflation has dropped to below 2.5%. As the Fed lowers interest rates, the window of opportunity for high-yielding fixed-income investments is rapidly closing. If you’re sitting on $10,000 or more, ready to reinvest, now is the time to explore alternative options that can generate substantial passive income.
Vici Properties: A Hidden Gem
Investing in the house, rather than trying to beat it, can be a shrewd move. Vici Properties, a real estate investment trust (REIT), owns some of the world’s most iconic properties, including MGM Grand, Mandalay Bay, Caesars Palace, and The Venetian, among others. With a diverse portfolio of 93 properties across 26 states and one in Canada, Vici boasts a unique advantage over other REITs.
Why Vici Stands Out
Unlike office buildings or warehouses, Vici’s trophy properties are difficult to replace, ensuring a steady stream of revenue. The average rent per property is a staggering $33 million, allowing Vici to generate substantial income without managing a vast number of assets. Even during the COVID-19 pandemic, when the Las Vegas strip came to a standstill, Vici collected 100% of its rent, thanks to its deep-pocketed tenants.
A Safe Haven for Dividend Investors
Vici Properties offers an attractive dividend yield of around 5.3%, with a payout that has consistently increased since its inception in 2017. The company’s funds from operations (FFO) are at an all-time high, ensuring the dividend is secure and likely to continue growing. As interest rates fall, Vici presents a compelling alternative to fixed-income investments, offering a safe and rising dividend yield.
Beyond Vici: Exploring Other Opportunities
Before investing in Vici Properties, consider exploring other top-performing stocks that could deliver exceptional returns. The Motley Fool’s Stock Advisor team has identified 10 stocks with enormous potential, and Vici Properties isn’t one of them. By joining their service, you’ll gain access to a wealth of expert insights, guidance, and regular updates to help you build a successful portfolio.
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