2 Dividend Stocks to Scoop Up Without Hesitation Right Now

  • High dividend payers can support and grow their payouts over the years.

  • VICI Properties is a leading real estate investment trust with an extensive portfolio of experience-oriented properties.

  • Bristol-Myers Squibb is a top pharmaceutical company with a large portfolio of profitable drugs.

  • 10 stocks we like better than Vici Properties ›

Adding dividend stocks to your portfolio can provide a steady stream of income and help buffer portfolio losses during market downturns. However, it’s important to carefully research any dividend stock you want to buy to make sure the dividend is sustainable and that the underlying business is consistent with your portfolio growth goals, as well as your risk appetite.

Look for companies with a track record of consistently paying dividends, preferably with a history of increasing their dividends over time, as this can indicate a stable, well-managed business. Be careful not to get too focused on the dividend yield, which shows annual dividends as a percentage of the current share price.

While an attractive yield is nice, a dividend yield that’s too high doesn’t tell you much about the quality of the company. In fact, yields being pushed too high could indicate falling stock prices or even potential financial distress.

So, here are two dividend stocks worth considering buying right now.

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Image source: Getty Images.

Weixi Real Estate (NYSE:VICI) is a real estate investment trust (REIT) specializing in owning, acquiring and developing experiential real estate. It is one of the largest landowners on the Las Vegas Strip, with 93 properties including iconic destinations such as Caesars Palace, the MGM Grand and the Venetian Resort. These include 54 gaming properties and 39 other experience-focused properties. VICI was established in 2017 from Caesars EntertainmentSeparating its valuable casino real estate from its operations while it files for Chapter 11 bankruptcy protection.

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As a REIT, VICI can own casino properties, lease them out, and generate rental income for shareholders. VICI held its initial public offering in early 2018, one of the largest REIT IPOs at the time. VICI is required to pay out the majority of its taxable income to shareholders in the form of dividends, so it remains a reliable dividend payer, having increased its annual dividend for seven consecutive years since its IPO. Its current annual dividend is about $1.80 per share, giving it a high dividend yield of about 6.3%.

VICI uses a triple-net (NNN) leasing model that separates property ownership from day-to-day operations. Under a triple-net agreement, the tenant is responsible for all property-related expenses, including taxes, insurance and maintenance. The company’s occupancy rate remains 100%. Most of VICI’s long-term leases include rent escalators linked to the Consumer Price Index (CPI), a strategy that helps protect its rental income from inflation. All lease agreements include fixed or variable annual base rent increases.

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