VICI Properties hits 5-year low despite strong AFFO growth and 6.8% dividend yield, with a likely dividend hike soon.

VICI Properties is trading at a five-year low even though it has shown strong AFFO growth, a 6.8% dividend yield, and a 7% dividend compound annual growth rate over the past eight years. The company maintains a strong dividend coverage ratio of 136% and recently raised its AFFO per share guidance to $2.44–$2.47, indicating a likely dividend increase by September. Despite these positive fundamentals and an investment-grade rating, market concerns about its tenant concentration with Caesars and the Fertitta buyout have weighed on its valuation, currently at 10.9 times AFFO. Analysts rate VICI as a strong buy, expecting double-digit total returns supported by its fully covered yield and upcoming dividend hike.