EPR Properties: A Monthly Dividend Stock With Over 5% Yield

As an income investor, I'm always on the lookout for stocks that offer high yields and consistent dividends. One such stock that has caught my attention is EPR Properties (NYSE:EPR), a real estate investment trust (REIT) that specializes in experiential properties. With an annual dividend of $3.42 per share and a yield of 7.52%, EPR Properties is an attractive option for investors seeking monthly income.



EPR Properties focuses on investing in three primary segments: Entertainment, Recreation, and Education. Its portfolio includes megaplex theatres, entertainment retail centers, and destination recreational and specialty properties. This focus on experiential real estate provides EPR Properties with a stable and reliable cash flow, which supports its ability to pay and increase dividends.

One of the key factors contributing to EPR Properties' high dividend yield is its disciplined approach to capital deployment. The company is selective in its investments, utilizing cash on hand, excess cash flow, disposition proceeds, and borrowings under its line of credit until its cost of capital improves. This disciplined approach helps maintain EPR Properties' financial strength and supports its ability to pay dividends.

Another factor that contributes to EPR Properties' dividend stability is its diversified tenant base. With over 200 tenants in 44 states and Canada, EPR Properties has a well-covered dividend, which means that the dividend is supported by the company's earnings and cash flows. This diversification helps maintain consistent cash flows and supports the company's ability to pay dividends.

EPR Properties' focus on experiential real estate also contributes to its dividend stability. Experiential properties tend to generate stable and reliable cash flows, even during economic downturns. For instance, even during the COVID-19 pandemic, EPR Properties was able to collect over $120 million in rent and interest that had been deferred, demonstrating the resilience of its portfolio.

In conclusion, EPR Properties is an attractive option for income investors seeking a monthly dividend stock with over 5% yield. Its focus on experiential real estate, disciplined approach to capital deployment, and diversified tenant base contribute to its ability to maintain a high dividend yield and stable dividend payments. As an income investor, I'm confident that EPR Properties will continue to provide me with the monthly income I need to enjoy my favorite hobbies and experiences in retirement.