Despite the currently challenged state of the Las Vegas gambling market, Vici Properties can continue to reward its shareholders.
Pepsi could add stability and growth to your portfolio.
A thousand dollars may not seem like a lot right now. But it could help set the stage for impressive long-term returns if invested in the right companies at the right times. Because of their combination of long-term growth potential and above-average dividend yields, Vici Properties (NYSE: VICI) and PepsiCo (NASDAQ: PEP) could make great picks.
Vici Properties is a real estate investment trust (REIT) that was formed from the spin-off of Caesars Entertainment‘s real estate assets after its bankruptcy liquidation in 2017. Since then, Vici has transformed into a leading leisure-focused real estate company with 54 casinos, four championship golf courses, and 39 other entertainment properties.
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The REIT business model involves raising capital to acquire real estate, which is then rented out to tenants. Vici stands out because of its specialization, high-quality tenants, and use of triple-net leases. These contracts shift property-level operating costs like insurance, maintenance, and taxes to the tenant, allowing Vici to reduce its exposure to real-estate inflation and enjoy stable cash flows.
Among the near-term challenges it faces is the current tourism downtrend in Las Vegas, where visitor traffic dropped by around 7.5% in 2025. However, the good news is that Vici’s assets are diversified across North America — it doesn’t have excessive exposure to any single market. The company also has a significant footprint outside the gambling industry with its Bowlero portfolio of bowling alleys.
REITs are required by law to distribute at least 90% of their annual income to shareholders via dividends, and with a yield of 6.3%, Vici’s stock offers far more income than the S&P 500‘s average yield of just 1.1%. And the company has increased its annual payout for seven years in a row.
Blue chip stocks are established industry leaders that can be expected to generate consistent profits for the long haul. PepsiCo easily fits into this category. Since its founding in 1965, the company has grown to dominate the market for convenient snacks and beverages, boasting high-profile global brands like Pepsi, Doritos, and Gatorade. It leverages these assets to deliver reliable returns to its shareholders.
Over the last few years, there have been rising fears that the spread of GLP-1-based weight-loss drugs like Ozempic could reduce demand for the junk food PepsiCo specializes in. But over time, these concerns have begun to look overblown. Pepsi’s growth remains robust. In the first quarter, its net revenue jumped 8.5% year over year to $19.44 billion, driven by strength in international markets, while operating profit surged 24% to $3.21 billion.
Image source: Getty Images.
The company has what it takes to maintain its stability. Junk food often behaves as a consumer staple because people often still spend on these items when the economy is weak. Given that analysts at Moody’s project a 49% chance of a U.S. recession in 2026, this knowledge will help PepsiCo shareholders sleep a little easier at night.
While PepsiCo’s dividend yield of 3.7% falls short of the massive yields you can expect to find in the REIT sector, the company has increased its payouts annually for a jaw-dropping 53 years in a row. And it has what it takes to maintain this impressive streak.
Diversification is one of the most important long-term investing strategies because it prevents underperformance by any one asset or sector from having too big an impact on the overall portfolio’s performance.
With that in mind, it would make a lot of sense for investors to bet on both Vici Properties and PepsiCo. But between the two, Vici looks like the better pick for investors who prioritize income over capital growth — making it ideal for a tax-advantaged account, such as a 401(k) or an individual retirement account. By contrast, PepsiCo is more likely to deliver the majority of its total returns through capital appreciation.
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Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Moody’s. The Motley Fool recommends Vici Properties. The Motley Fool has a disclosure policy.
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