GLPI - Gaming and Leisure Properties: Place A Bet On This 7% Yield With Strong Upside Potential

2024-05-01 07:00:00 ET

Summary

• Gaming and Leisure Properties is a compelling buy for long-term investors, with a dividend yield near 7% and potential for double-digit upside.
• GLPI's recent earnings showed strong revenue growth and a healthy leverage ratio, giving them financial flexibility to navigate the higher for longer interest rate environment.
• The company's strong balance sheet and dividend coverage further support its potential for growth.
• Although the current payout ratio is slightly above management's target of 80%, GLPI's dividend is well-covered with AFFO.
• One of their tenants, Bally's, was placed on negative outlook by the S&P, and had their credit rating downgraded. This could have an impact on the company going forward.

Introduction

I've been a fan of Gaming and Leisure Properties ( GLPI ) for quite some time now. The company has a dividend yield near 7% currently and with their double-digit upside potential, GLPI is a compelling buy, especially for long-term investors. As a long-term investor myself, current opportunities in the REIT sector ( XLRE ) are coming to an end in the medium term in my opinion. Although there are talks of interest rates remaining higher for longer, I still suspect the first cut will happen sometime this year....

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