Got $1,000? This Exciting 6.5%-Yielding Monthly Dividend Stock Can Pay You $65 (and Growing) of Passive Income Each Year.

If you're looking to generate passive income with a relatively small investment, EPR Properties (EPR) might be just the ticket. This specialty real estate investment trust (REIT) focuses on experiential real estate, including movie theaters, eat & play properties, attractions, fitness and wellness properties, and other experiences. With a current dividend yield of around 6.5%, a $1,000 investment in EPR Properties could generate approximately $65 of passive income each year. But the best part? That income stream is expected to grow over time.

EPR Properties' portfolio is diversified across various experiential real estate sectors, reducing the impact of any single sector's underperformance on the overall portfolio and dividend payments. The REIT's leases are typically long-term, providing a steady stream of rental income to support its dividend. Many of EPR Properties' leases include rental escalation clauses, which provide incremental income growth over time. This helps to support the REIT's dividend growth.

In 2024, EPR Properties invested a total of $1.6 billion into new properties, with a strong focus on industrial real estate and North America. This strategic approach allowed the company to acquire high-quality properties with long-term leases featuring rental escalation clauses, which will provide the company with steady income growth over time. The REIT's acquisitions and development projects play a significant role in driving dividend growth by expanding its portfolio of experiential real estate and increasing its rental income.

To balance these investments with maintaining a strong balance sheet, EPR Properties uses a combination of internal cash flow, asset sales, and its balance sheet capacity. In 2024, the company retained $110 million in cash to help fund new investments in experiential properties. It also sold $74.4 million of non-core theater and educational properties for a net gain of $16.1 million, which helped fund its expansion program. Additionally, the company plans to sell between $25 million and $75 million of non-core assets in 2025 to fund its investment volume.

EPR Properties' focus on experiential real estate, diversified portfolio, long-term leases with rental escalation clauses, acquisitions, and development projects all contribute to its dividend sustainability and growth. With a high dividend yield and a strong track record of increasing its payout, EPR Properties is an attractive option for income investors seeking a combination of high yield and growth potential.

So, if you're looking to generate passive income with a relatively small investment, consider EPR Properties. With a current dividend yield of around 6.5%, a $1,000 investment could generate approximately $65 of passive income each year. And with the company's focus on growth and dividend increases, that income stream is expected to grow over time. Don't miss out on this exciting opportunity to build your passive income portfolio.