This real estate trust doesn’t run casinos or resorts. It owns the ground beneath them and collects rent from the operators who do, under long-term triple-net leases that push property taxes, insurance and maintenance costs onto the tenant. That structure produces a forward dividend yield of 6.82%, a level that ranks in the top 40% of all dividend-paying stocks we track and sits well above the 5.5% average for its real estate peer group. We just added to our position in the Best High Dividend Stocks Portfolio.
The portfolio owns some of the largest gaming and entertainment properties in the country, leased to a short list of well-capitalized operators. Recent growth has come from pushing beyond gaming into wellness and leisure real estate, including a new Caribbean resort project.
The main risk sits with tenant concentration, since two operators account for the bulk of rent and both are working through ownership situations that could delay future lease talks.
We increased our stake because the underlying cash flow grew this quarter and the yield still looks well covered relative to that growth. This kind of move fits the High Yield mandate of the Best High Dividend Stocks Portfolio, which favors stocks offering strong current income alongside a business capable of protecting that income over time.
