Clogged ports, economic stimulus measures and supply chain disruptions caused by the COVID-19 pandemic have led to a rapid increase in the number of migrants. inflation. This has had a considerable effect on investors and savers. The Federal Reserve quickly raised interest rates to counter inflation, and suddenly bonds, certificates of deposit (CDs), American treasuresand other fixed-income investments returned more than 5%, the highest in years. However, as you can see, inflation is back to less than 2.5%.

Inflation rate in the United States data by Y Charts

The Fed is now lowering rates, so the days of high returns on fixed-income investments are numbered. Many investments people buy are maturing, so you may have $10,000 or another amount to reinvest soon.

Vici Properties (VICI -2.90%) is a great place to put that money and continue to generate tons of passive income. Here’s why.

What is Vici Properties?

Beating the house in Las Vegas is difficult; the odds are not in your favor. After all, they don’t pay for neon lights and fancy resorts with fairy dust. Investing in home is a much better way to make money.

Many Las Vegas resorts and casinos do not own the land or buildings they occupy. Instead, the real estate investment trust (REIT) Vici Properties does it. Vici has some of the most recognizable properties in the world, like MGM Grand, Mandalay Bay, Caesars Palace, The Venetian and many more. In total, it owns 93 properties in 26 states and one in Canada.

Owning these trophy properties provides a significant advantage over other REITs because they are difficult to replace, unlike an office building or warehouse. Plus, rents are extremely high, $33 million on average, meaning Vici makes a lot of money without managing hundreds or thousands of assets.

You may be wondering if Vici would suffer if the economy turns negative and tourism declines. However, Vici collected 100% of the rent during COVID-19, when the Las Vegas Strip was entirely closed for months. This is the advantage of having tenants with deep pockets.

Is Vici Properties stock a buy?

Vici is a great stock for passive income. The current dividend yield is around 5.3% and the payout has increased every year since Vici’s inception in 2017. funds from operations (FFO)the money it uses to pay the growing dividend, has reached a record level.

VICI Operating Fund (TTM) data by Y Charts

The increase in FFO means that the dividend is safe and should continue to increase.

The yield is also higher than many other popular REITs:

VICI dividend yield data by Y Charts

As interest rates fall, dividend investors need to look beyond fixed-income investments like high-yield bonds. Vici offers a safe and growing dividend with a yield above 5%.

Don’t try to beat the house in Vegas; buy a piece instead.