Dividend stocks have long been a powerful tool for wealth creation. If you had invested just $100 into the average dividend stock 50 years ago and reinvested those dividends, your investment would have grown to $8,756. This outpaces the $4,439 return of the average S&P 500 stock and dwarfs the $843 return of non-dividend-paying stocks. The most significant returns came from companies that consistently increased their payouts, turning $100 into an astonishing $14,118 over the same period. This data underscores why dividend growth stocks are some of the best investments you can make today.
For those looking to capitalize on the power of dividend investing, Sun Communities (NYSE: SUI) and VICI Properties (NYSE: VICI) stand out as two no-brainer buys under $200. These real estate investment trusts (REITs) offer resilient income streams, consistent dividend growth, and the financial flexibility to continue expanding. Here’s why they are must-have stocks for long-term investors.
Sun Communities (SUI): A Leading Landlord in Niche Spaces
A Unique Business Model Driving Stability
Sun Communities is a REIT specializing in manufactured home communities, RV parks, and marinas. It’s the largest publicly traded company in this niche and has expanded into the U.K. holiday park market, making it a dominant player in multiple property sectors.
The stability of Sun Communities' income is remarkable. Manufactured home communities, in particular, offer predictable revenue streams due to high demand for affordable housing and the high cost of relocating manufactured homes. In fact, the company has maintained positive net operating income (NOI) growth for over 20 years—a testament to its resilient business model.
Consistent Dividend Growth and Strong Financials
Sun Communities currently pays a quarterly dividend of $0.94 per share ($3.76 annually), yielding around 3% at a share price of roughly $125. The REIT has increased its dividend for nine consecutive years, reflecting its strong cash flow and commitment to shareholder returns.
Looking ahead, Sun Communities is well-positioned for continued dividend growth. The company plans to implement rental increases ranging from 3.7% to 5% in 2025, further boosting its revenue. Additionally, its strong balance sheet allows it to acquire more properties, reinforcing its long-term expansion strategy.
Why Sun Communities is a No-Brainer Buy
Stable Revenue: High demand for affordable housing and barriers to moving manufactured homes create a steady cash flow.
Dividend Growth: Nine consecutive years of dividend increases with strong future growth potential.
Expansion Opportunities: Plans to grow through acquisitions and rental increases.
Resilient Business Model: Positive NOI growth for more than two decades.
For investors seeking a solid, low-risk dividend stock under $200, Sun Communities is a compelling option.
VICI Properties (VICI): A Low-Risk Bet for Growing Income
Owns Some of the Most Iconic Real Estate
VICI Properties is another REIT, but it focuses on experiential real estate—owning gaming, hospitality, and entertainment properties. It holds a unique position in the market as the landlord of some of the most iconic Las Vegas Strip casinos, including Caesars Palace and MGM Grand.
VICI Properties leases these properties back to operators under long-term triple-net leases (NNN). These agreements ensure predictable, inflation-protected rental income since tenants are responsible for property expenses. The result? A stable and growing revenue stream that makes it one of the most reliable REITs on the market.
Strong Dividend Yield and Growth
VICI Properties currently pays a quarterly dividend of $0.4325 per share ($1.73 annually), yielding nearly 6% at a stock price of under $30. Since its formation, VICI has increased its dividend for seven consecutive years, growing at a 7% compound annual rate, outpacing many of its peers.
Expansion and Growth Opportunities
In addition to inflation-linked rental increases, VICI has multiple growth levers:
Acquiring More Properties: VICI frequently purchases experiential properties through sale-leaseback deals, further expanding its portfolio.
Financing Developments: The REIT provides funding to developers in exchange for future purchase options or interest income.
Capital Partnerships with Tenants: VICI helps tenants fund expansion projects, securing increased rental revenue in return.
Why VICI Properties is a No-Brainer Buy
High Yield: Near 6% dividend yield, offering strong income potential.
Reliable Revenue: Long-term, inflation-protected leases with stable tenants.
Consistent Dividend Growth: Seven years of consecutive increases, with a 7% CAGR.
Multiple Expansion Strategies: Sale-leasebacks, financing partnerships, and organic rental growth.
For income-focused investors, VICI Properties is a fantastic, low-risk way to generate passive income while benefiting from long-term real estate appreciation.
Lower Risk, Higher Returns: Why These REITs Stand Out
Both Sun Communities and VICI Properties offer unique advantages that make them standout dividend stocks:
Resilient Business Models: Sun Communities thrives in affordable housing, while VICI Properties dominates experiential real estate.
Growing Dividends: Both have consistently increased their payouts for years.
Financial Flexibility: Strong balance sheets allow for continued expansion.
Lower Risk: Stable rental income reduces volatility, making them safer than many other stocks.
Final Thoughts: The Power of Dividend Growth Investing
Dividend stocks have proven to be exceptional long-term investments, especially those that consistently increase their payouts. Sun Communities and VICI Properties are two excellent choices for investors looking to build wealth through steady, growing dividends.
Sun Communities is a leading REIT in manufactured homes, RV parks, and marinas, offering stability and long-term growth.
VICI Properties owns top-tier experiential real estate, providing a high yield with consistent dividend increases.
With both stocks trading for under $200, now is a great time to add these no-brainer dividend plays to your portfolio. Their combination of stable income, consistent growth, and financial strength makes them ideal picks for long-term wealth generation.
Are you ready to boost your passive income? Sun Communities and VICI Properties offer the perfect mix of growth and stability for dividend investors. Don't miss out!