Published on: April 2, 2026, 05:23h.
Updated on: April 2, 2026, 05:23h.
- Jefferies’ REIT dividend champions include Gaming and Leisure and VICI
- This duo is part of the Elite Eight dividend stocks highlighted by the research firm
- GLPI has progressed to the Final Four
Utilizing terminology from the NCAA Tournament, Jefferies analyst Jonathan Petersen has explored dividend-yielding real estate stocks, revealing positive insights for two prominent casino property owners.
In the latest report, Jefferies identifies Gaming and Leisure Properties (NASDAQ: GLPI) and VICI Properties (NYSE: VICI) as members of its exclusive REIT dividend “Hall of Famers.” Only 15 stocks have achieved this prestigious status. Within the analyst’s NCAA Tournament-inspired ratings, both GLPI and VICI made it to the Elite Eight, with Gaming and Leisure ultimately advancing to the Final Four after their match.
Petersen notes, “We anticipate GLPI will benefit from a diverse and high-coverage tenant base, coupled with visible growth due to recent acquisitions made at advantageous cap rates. With solid rent coverage metrics, projections for robust multi-year AFFO growth, and a dividend yield exceeding 7%, GLPI stands out among our preferred choices in the Gaming and Lodging REIT category.”
AFFO, which refers to Adjusted Funds From Operations, is a key metric utilized by investors to assess the financial health of a REIT, specifically regarding its capability to cover and augment dividends.
Casino REITs Showcase Strong Dividend Performance
Investors often scrutinize REITs for their dividends, but it’s not solely about delivering above-average yields. Generally, real estate stocks are viewed as defensive, slower-growth categories, making sustained dividend growth an appealing factor for long-term investors.
Both Gaming and Leisure and VICI are demonstrating robust payout growth. In recent years, GLPI has emerged as a reliable dividend growth entity, while VICI has increased its dividends ten times since separating from Caesars Entertainment (NASDAQ: CZR) in 2017.
Petersen elaborates, “Out of the 72 REITs analyzed over the past 15 years, only 28 have managed to maintain their dividends without any cuts. These 28 delivered an average total annual return that exceeded the average of the 44 REITs that experienced at least one dividend cut during the same timeframe by +964 basis points. This level of outperformance highlights the significance we place on sustainable dividends.”
While neither Gaming and Leisure nor VICI has operated as independent public firms for 15 years, their current dividend trajectories could serve as indicators of favorable trends ahead. Notably, neither is among the 83 REITs identified by Jefferies as having reduced dividends in the last five years.
The capacity of these casino property owners to maintain their dividends is imperative, as REITs that have preserved or increased their payouts over the past five years have generally outperformed those that have cut their dividends.
Casino REITs Exhibit Long-Term Resilience
Although past performance cannot guarantee future results, the history of Gaming and Leisure and VICI is commendable. The esteemed Jefferies REIT Hall of Famers have offered an average compound annual growth rate of 5.7% in returns over the last eight years, with GLPI and VICI achieving 7.8% and 7.4%, respectively.
Petersen reinforces the idea that dividends are integral to REITs’ long-term return profiles, which bodes well for both GLPI and VICI moving forward.
“Our evaluation of dividend trends among REITs over the past 15 years has shown that consistent and growing dividend distributions have led to the highest shareholder returns,” the analyst concludes. “In fact, there is little link between the dividend yield of a REIT from 15 years ago and the total shareholder returns over the forthcoming 15 years.”