Gaming and Leisure Properties Inc (NASDAQ:GLPI) is a real estate investment trust (REIT) that owns properties that are to be leased out to different gaming operators. This is a unique type of REIT that offers you lots of stability since casinos invest a lot of money into their locations and normally generate lots of traffic and revenue, so there is less risk than you would normally have with a traditional REIT that deals with offices and retailers that often move locations.
The stock currently pays a dividend yield of 6.8% and since 2014 the company has grown its payouts by 21%.
In the past four years the company has seen strong growth with revenues of just $235 million in 2013 nearly quadrupling to $828 million in fiscal 2016. The REIT saw an even more impressive growth in its bottom line with income of less than $15 million rising to $289 million, for an almost twentyfold increase.
Year-to-date the stock has generated returns of over 20% for investors by way of capital appreciation, which is on top of an already strong dividend yield. There are many things to like about the stock as it provides you with a great stream of stable income. It also gives you with a unique way to invest in the casino and gaming industry without having to own shares of a casino.
The stock is a great buy and with a price to earnings multiple of 20, it is not an expensive price for the amount of growth that the company has seen.