Realty Income (O) vs VICI: A Comparative Passive Income Analysis
Realty Income (O) vs VICI: A Comparative Passive Income Analysis
For passive-income investors, REITs are the engine of cash flow. The choice between the stalwart Realty Income and the challenger VICI depends on one question: Do you need safety today, or growth tomorrow?
Executive Summary
- The Monthly Factor: Realty Income (O) is the “Monthly Dividend Company,” favored by retirees for steady, predictable cash flow to cover living expenses. VICI pays quarterly.
- Sector Bet: O is a diversified bet on essential retail (7-Eleven, Walgreens). VICI is a focused bet on experiential gaming (Caesars, MGM) with high barriers to entry.
- Growth Angle: VICI offers stronger inflation protection via CPI-linked leases, while O offers unmatched historical stability across economic cycles.
Concentration Risk Warning
The “Trophy Asset” Trap: VICI generates nearly 100% of its rent from gaming/hospitality assets. While high-quality, this lacks the sector diversification of Realty Income (13,000+ properties across 80+ industries). VICI is a focused play; O is a broad safety net.
Mechanic: The “Triple Net” Advantage
Monthly
O Payout Freq
~7.0%
VICI Growth Rate
NNN
Lease Structure
CPI
VICI Rent Hike
Simulation: Dividend Growth (5-Year CAGR)
Compounding Speed Comparison
| Feature | Realty Income (O) | VICI Properties |
|---|---|---|
| Primary Sector | Diversified Retail | Gaming / Hospitality |
| Payout Freq. | Monthly | Quarterly |
| Track Record | Dividend Aristocrat | Since 2017 (IPO) |
| Inflation Hedge | Moderate | High (CPI-Linked) |
“If you need to pay the electric bill every month, buy O. If you want to beat inflation over the next decade, buy VICI.”
Essential Resources
INTERNAL
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