Perhaps the biggest story in the stock market these past few weeks is the high volatility, with intraday swings in the S&P 500 index of as much as 4%. Don’t expect that volatility to go away anytime soon, either, as there are plenty of market catalysts looming just ahead.
This week, we’ll see the January jobs numbers, and major companies like Amazon and Google will be reporting earnings. Investors will be watching those numbers with great interest. The first earnings season of 2022 has seen 77% of companies beat the estimates – but by lower margins than the last four quarters. The average beat so far for 4Q21 is 4%, compared to the 16% average in the previous four quarters.
Wall Street’s analysts appear to be counseling some degree of caution going forward. They’re starting to swing their support toward high-yielding dividend stocks, classic defensive plays in a volatile market situation. Opening up the TipRanks database, we examine the details behind three such stocks to find out what else makes them compelling buys.
VICI Properties (VICI)
The first dividend stock we’re looking at is VICI, a New York City-based real estate investment trust (REIT) with a twist – VICI specializes in casino properties. VICI’s portfolio holds gaming, hospitality, and entertainment destinations, including 27 gaming locations and 200 restaurants, bars, and clubs; these properties total over 46 million square feet, and feature over 17,000 hotel rooms.
The company has an active acquisition program, and in the third quarter last year (the most recent reported), it spend over $17 billion acquire MGM Growth Properties. VICI also entered into an arrangement to provide mortgage financing, on the order of $80 million, for BigShots Golf facilities across the US.
VICI’s third quarter top line came in at $375 million, in line with the previous three quarters, and up 10% from 3Q20. Earnings were down, however, from 74 cents per share in the year-ago quarter to 28 cents in 3Q21. The company reported $669 million in liquid assets, however, and that, combined with earnings, was enough…