Gaming and Leisure Properties, Inc. (NASDAQ:GLPI) stock has been soaring more than 40% over the past two years but what might make it an even more attractive buy is its dividend.
Currently paying shareholders a quarterly dividend of $0.70, you can earn a yield of 5.9% investing in the stock today.
However, the best part is that the real estate investment trust (REIT) has also increased its payouts over the years. Its most recent hike was an increase of 2.9% from $0.68. Over three years, its dividend payments have risen by 17%, averaging a compounded annual growth rate of 5.3% during that time.
With 44 facilities in 16 states, the REIT offers investors some good diversification to their portfolios to go along with its strong dividend.
The company still plans to grow by adding more facilities into its portfolio. From revenue of $828.3 million in 2016, Gaming and Leisure’s top line grew to $1.06 billion in 2018, an increase of 28% in two years time. Its profits were also up by more than 17% during that time.
What’s also encouraging is that the company has been generating lots of free cash flow, with $716 million generated over the past 12 months. That’s more than enough to cover its dividend payments of $584 million during that time and gives the company more room to continue increasing its payouts.
Currently, the stock is a bit of an expensive buy, trading at a forward price-to-earnings multiple of 22 and a PEG ratio of 2.4.
But with a low beta, a good dividend, and the stock showing no signs of slowing down, investors may not want to wait to buy Gaming & Leisure given the great returns it has already provided for its shareholders.
