$VICI is up 7% after hours, here is why ๐ #12
VICI and the real reason behind it's 7% gain after hours
VICI Properties (NYSE: $VICI) is a real estate investment trust specializing in casino properties, based in New York City. It just went 7% after hours. Today we will be exploring the reasons and their impact on my portfolio.
Overview
๐ฅง $VICI enters S&P 500
๐ฅ Impact on my portfolio
๐ฎ Future outlook
๐ฅง $VICI enters S&P 500
On the effective date of June 8th, $VICI will be added to S&P 500 and will replace Cerner Corp. (NASD: CERN). Oracle Corp. (NYSE: ORCL) soon completed the acquisition of $CERN and hence it is deleted from the list. The S&P 500 list is updated quarterly.
The addition to S&P 500 has caused $VICI to jump up around 7% after hours in a phenomenon called the S&P phenomenon. The S&P phenomenon is The S&P phenomenon is a temporary increase in the price of stock upon the announcement of its inclusion in the S&P 500 Index. This occurs because the index is widely tracked by institutional investors. When a stock is added, funds that follow the index buy the stock.
๐ฅ Impact on my portfolio
$VICI is my third highest individual stock after $U and $AAPL at around $24,000 invested. Even during this market downturn, $VICI is in green at 4%. I have overall gained 15.16% ($3,125.75) of which 10.58% ($2,543.55) is in capital gains and around 4.58% ($582.20) gain in dividends.
Now this 7% change brings $VICI to the top gainersโ list. Currently, $WM is leading the race at 16%. This 7% gain would mean I would gain +$1,836.49. My overall capital gain would go to +$4,380.04 (+18.22%), resulting in my overall gain of $ +$4,962.24 (+20.65%). Overall good gains!
๐ฎ Future outlook
$VICI has been a solid company in my portfolio. With a dividend yield of 4.41% - it is giving me solid cash flow and a 3-year dividend CAGR of 7%+ is giving me a good cash flow growth. While the capital gains are sexy, cash flow with capital gains is sexier. I wonโt just sell the $VICI yet. I plan to hold it for longer-term and see the compounding magic.