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O vs. VICI: Who Wins the Dividend Race, and Which Stock to Buy?
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Key Takeaways
Realty Income reported 98.6% occupancy and lifted 2025 AFFO guidance to $4.24-$4.28.
VICI's portfolio includes 93 properties with 100% occupancy and long-term triple-net leases.
Estimates for O's FFO trend lower, while VICI's 2025 FFO growth outlook has been revised upward.
Dividend income remains a cornerstone for income-focused investors, and within the REIT space, Realty Income (O - Free Report) and VICI Properties (VICI - Free Report) are two leading names. Both have built reputations as reliable payers, supported by expansive portfolios and long-term net lease agreements. For investors, the contest is not only about current yield but also the durability, growth and resilience of those dividends in shifting economic conditions.
Recently, each company announced fresh increases. Realty Income lifted its monthly payout to 26.95 cents per share, marking its 132nd dividend hike since 1994, payable on Oct. 15 to holders on record as of Oct. 1. VICI boosted its quarterly dividend by 4% to 45 cents per share, payable on Oct. 9 to holders on record as of Sept. 18, 2025. These moves underscore the centrality of dividends to their strategies. O and VICI’s latest hike yields roughly 5.43-5.44% based on their yesterday’s closing price.
Still, the comparison isn’t straightforward. Realty Income brings unmatched diversification, while VICI leverages its dominance in experiential real estate. Evaluating their strengths and risks is essential in determining the better dividend stock amid today’s uncertain backdrop.
The Case for Realty Income
Realty Income, with a portfolio of more than 15,600 properties spanning 91 industries, exemplifies scale and diversification. Its tenant base is anchored by essential sectors such as grocery, convenience and service-oriented retail, providing a defensive rent foundation. O focuses on non-discretionary, service-based tenants, and about 90% of rent is insulated from downturns and e-commerce risks.
Operational performance remains strong. In the second quarter, occupancy closed at 98.6%, above the long-term average. Rent recapture across 346 leases reached 103.4%, including a notable 139% on re-leases to new tenants, highlighting the strength of its real estate. On the growth front, Realty Income sourced a record $43 billion in investment opportunities and completed $1.2 billion in acquisitions at a 7.2% initial yield. With 76% of activity concentrated in Europe, where financing conditions remain favorable, the REIT now targets $5 billion of investment volume for 2025. AFFO per share guidance was modestly raised to $4.24-$4.28, reflecting disciplined growth.
From a financial perspective, Realty Income maintains $5.1 billion in liquidity, investment-grade ratings of A3/Stable from Moody’s and A-/Stable from S&P and a fixed-charge coverage ratio of 4.5. With manageable debt maturities through 2026, the balance sheet supports continued dividend reliability. A member of the S&P 500 Dividend Aristocrats, the REIT has delivered 30 years of consecutive monthly dividends and 112 straight quarterly increases.
Still, challenges persist. AFFO growth could remain muted amid tighter spreads and macro uncertainty. Retail exposure poses some risk from bankruptcies or trade disruptions, with the REIT also anticipating 75 basis points of rent loss in 2025, partly from tenant credit risks linked to earlier M&A-driven portfolio additions. While offering income stability, Realty Income’s dividend growth profile is slower and more measured.
The Case for VICI Properties
VICI Properties has firmly established itself as a leading experiential REIT, underpinned by a portfolio of premier gaming and entertainment assets. Its holdings include Caesars Palace Las Vegas, MGM Grand and the Venetian Resort, along with a growing set of experiential properties across North America. This collection positions VICI to benefit from the enduring strength of the American consumer and the rising preference for experiential activities.
The company owns 54 gaming and 39 experiential properties in the United States and Canada, all backed by long-term triple-net leases averaging 40 years. Occupancy remains at 100%, reflecting the mission-critical importance of these assets to tenants, who face significant regulatory and financial barriers to relocation. This structure ensures reliable rental income and a steady foundation for dividend payments.
Inflation protection adds another layer of stability. As of 2024, 40% of VICI’s rent roll is linked to CPI, with that figure expected to climb to 90% by 2035. Combined with the fact that 74% of rents are sourced from S&P 500 tenants, this framework bolsters income visibility and credit strength.
Since its formation, VICI has grown adjusted EBITDA by 377%, expanding beyond gaming to experiential assets like Chelsea Piers and Bowlero. This diversification reduces sector concentration and broadens growth avenues. Financially, VICI ended June 30, 2025 with $3 billion in liquidity and net leverage of 5.2X, within its 5.0-5.5X target range.
With a policy of distributing roughly 75% of AFFO, VICI offers investors a resilient income stream, coupled with long-term dividend growth potential. The latest dividend reflects a compound annual growth rate of 6.6% since 2018.
How Do Estimates Compare for Realty Income & VICI Properties?
The Zacks Consensus Estimate for Realty Income’s 2025 sales and funds from operations (FFO) per share implies year-over-year growth of 6.14% and 1.67%, respectively. Also, FFO per share estimates for 2025 and 2026 have been revised southward over the past 60 days.
For Realty Income:
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for VICI Properties’ 2025 sales and FFO per share calls for year-over-year growth of 3.86% and 5.75%, respectively. What is also encouraging is that FFO per share estimates for 2025 and 2026 have been trending northward over the past 30 days.
For VICI Properties:
Image Source: Zacks Investment Research
Price Performance and Valuation of O & VICI
Year to date, Realty Income shares have rallied 11.3%, while VICI Properties stock has gained 13.5%. In comparison, the S&P 500 composite has risen 11.4% in the same time frame.
Image Source: Zacks Investment Research
O is trading at a forward 12-month price-to-FFO, which is a commonly used multiple for valuing REITs, of 13.63X, ahead of its one-year median of 13.16X. Meanwhile, VICI is presently trading at a forward 12-month price-to-FFO of 13.50X, which is below its one-year median of 13.61X as well as a discount to O. Both O and VICI carry a Value Score of D.
Image Source: Zacks Investment Research
Conclusion: VICI Has the Edge
Both Realty Income and VICI Properties offer dependable dividends, but their trajectories diverge. Realty Income delivers consistency and unmatched diversification. VICI Properties offers a superior income safety profile in 2025. Its longer lease durations, mission-critical assets, inflation-protected rent escalators and tenant roster anchored by highly rated operators provide meaningful stability. Coupled with measured diversification beyond gaming and disciplined capital allocation, these factors lower risk and enhance reliability.
For investors looking for a resilient and expanding income stream, VICI emerges as the more compelling net lease REIT choice. Estimate revisions and valuation also suggest that VICI Properties stands out as the better net lease REIT pick.
While VICI carries a Zacks Rank #2 (Buy), O has a Zacks Rank #4 (Sell).
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
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O vs. VICI: Who Wins the Dividend Race, and Which Stock to Buy?
Key Takeaways
Dividend income remains a cornerstone for income-focused investors, and within the REIT space, Realty Income (O - Free Report) and VICI Properties (VICI - Free Report) are two leading names. Both have built reputations as reliable payers, supported by expansive portfolios and long-term net lease agreements. For investors, the contest is not only about current yield but also the durability, growth and resilience of those dividends in shifting economic conditions.
Recently, each company announced fresh increases. Realty Income lifted its monthly payout to 26.95 cents per share, marking its 132nd dividend hike since 1994, payable on Oct. 15 to holders on record as of Oct. 1. VICI boosted its quarterly dividend by 4% to 45 cents per share, payable on Oct. 9 to holders on record as of Sept. 18, 2025. These moves underscore the centrality of dividends to their strategies. O and VICI’s latest hike yields roughly 5.43-5.44% based on their yesterday’s closing price.
Still, the comparison isn’t straightforward. Realty Income brings unmatched diversification, while VICI leverages its dominance in experiential real estate. Evaluating their strengths and risks is essential in determining the better dividend stock amid today’s uncertain backdrop.
The Case for Realty Income
Realty Income, with a portfolio of more than 15,600 properties spanning 91 industries, exemplifies scale and diversification. Its tenant base is anchored by essential sectors such as grocery, convenience and service-oriented retail, providing a defensive rent foundation. O focuses on non-discretionary, service-based tenants, and about 90% of rent is insulated from downturns and e-commerce risks.
Operational performance remains strong. In the second quarter, occupancy closed at 98.6%, above the long-term average. Rent recapture across 346 leases reached 103.4%, including a notable 139% on re-leases to new tenants, highlighting the strength of its real estate. On the growth front, Realty Income sourced a record $43 billion in investment opportunities and completed $1.2 billion in acquisitions at a 7.2% initial yield. With 76% of activity concentrated in Europe, where financing conditions remain favorable, the REIT now targets $5 billion of investment volume for 2025. AFFO per share guidance was modestly raised to $4.24-$4.28, reflecting disciplined growth.
From a financial perspective, Realty Income maintains $5.1 billion in liquidity, investment-grade ratings of A3/Stable from Moody’s and A-/Stable from S&P and a fixed-charge coverage ratio of 4.5. With manageable debt maturities through 2026, the balance sheet supports continued dividend reliability. A member of the S&P 500 Dividend Aristocrats, the REIT has delivered 30 years of consecutive monthly dividends and 112 straight quarterly increases.
Still, challenges persist. AFFO growth could remain muted amid tighter spreads and macro uncertainty. Retail exposure poses some risk from bankruptcies or trade disruptions, with the REIT also anticipating 75 basis points of rent loss in 2025, partly from tenant credit risks linked to earlier M&A-driven portfolio additions. While offering income stability, Realty Income’s dividend growth profile is slower and more measured.
The Case for VICI Properties
VICI Properties has firmly established itself as a leading experiential REIT, underpinned by a portfolio of premier gaming and entertainment assets. Its holdings include Caesars Palace Las Vegas, MGM Grand and the Venetian Resort, along with a growing set of experiential properties across North America. This collection positions VICI to benefit from the enduring strength of the American consumer and the rising preference for experiential activities.
The company owns 54 gaming and 39 experiential properties in the United States and Canada, all backed by long-term triple-net leases averaging 40 years. Occupancy remains at 100%, reflecting the mission-critical importance of these assets to tenants, who face significant regulatory and financial barriers to relocation. This structure ensures reliable rental income and a steady foundation for dividend payments.
Inflation protection adds another layer of stability. As of 2024, 40% of VICI’s rent roll is linked to CPI, with that figure expected to climb to 90% by 2035. Combined with the fact that 74% of rents are sourced from S&P 500 tenants, this framework bolsters income visibility and credit strength.
Since its formation, VICI has grown adjusted EBITDA by 377%, expanding beyond gaming to experiential assets like Chelsea Piers and Bowlero. This diversification reduces sector concentration and broadens growth avenues. Financially, VICI ended June 30, 2025 with $3 billion in liquidity and net leverage of 5.2X, within its 5.0-5.5X target range.
With a policy of distributing roughly 75% of AFFO, VICI offers investors a resilient income stream, coupled with long-term dividend growth potential. The latest dividend reflects a compound annual growth rate of 6.6% since 2018.
How Do Estimates Compare for Realty Income & VICI Properties?
The Zacks Consensus Estimate for Realty Income’s 2025 sales and funds from operations (FFO) per share implies year-over-year growth of 6.14% and 1.67%, respectively. Also, FFO per share estimates for 2025 and 2026 have been revised southward over the past 60 days.
For Realty Income:
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for VICI Properties’ 2025 sales and FFO per share calls for year-over-year growth of 3.86% and 5.75%, respectively. What is also encouraging is that FFO per share estimates for 2025 and 2026 have been trending northward over the past 30 days.
For VICI Properties:
Image Source: Zacks Investment Research
Price Performance and Valuation of O & VICI
Year to date, Realty Income shares have rallied 11.3%, while VICI Properties stock has gained 13.5%. In comparison, the S&P 500 composite has risen 11.4% in the same time frame.
Image Source: Zacks Investment Research
O is trading at a forward 12-month price-to-FFO, which is a commonly used multiple for valuing REITs, of 13.63X, ahead of its one-year median of 13.16X. Meanwhile, VICI is presently trading at a forward 12-month price-to-FFO of 13.50X, which is below its one-year median of 13.61X as well as a discount to O. Both O and VICI carry a Value Score of D.
Image Source: Zacks Investment Research
Conclusion: VICI Has the Edge
Both Realty Income and VICI Properties offer dependable dividends, but their trajectories diverge. Realty Income delivers consistency and unmatched diversification. VICI Properties offers a superior income safety profile in 2025. Its longer lease durations, mission-critical assets, inflation-protected rent escalators and tenant roster anchored by highly rated operators provide meaningful stability. Coupled with measured diversification beyond gaming and disciplined capital allocation, these factors lower risk and enhance reliability.
For investors looking for a resilient and expanding income stream, VICI emerges as the more compelling net lease REIT choice. Estimate revisions and valuation also suggest that VICI Properties stands out as the better net lease REIT pick.
While VICI carries a Zacks Rank #2 (Buy), O has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.