Building Retirement Wealth with Essential Properties: A Dividend-Driven Strategy

In an era of market volatility and rising living costs, disciplined investors are turning to dividend-paying stocks to fuel retirement savings. Essential Properties Realty Trust (EPRT), a real estate investment trust (REIT) focused on essential-use properties, offers a compelling opportunity to grow a retirement fund incrementally—starting with as little as $100 per month. By leveraging its attractive dividend yield and the power of compounding, investors can build long-term wealth while aligning with the stability of real estate.

The Dividend Yield Advantage

EPRT's 3.7% dividend yield (as of June 2025) stands out in a market where many stocks offer meager payouts. This yield is supported by a $0.30 quarterly dividend per share, which translates to an annualized $1.20 per share. For an investor aiming to deposit $100 into retirement monthly, EPRT's dividend structure provides a clear path:

How much to invest?
To generate $100 in monthly dividends, you'd need a principal of roughly $27,027 ($100 ÷ (3.7% ÷ 12)). However, most investors won't start at this scale. Instead, a monthly investment of $100—even at EPRT's current price of ~$32.68 per share—can be compounded over decades to create meaningful growth.

Compounding: The Engine of Long-Term Growth

Compounding is the secret to turning small contributions into substantial wealth. Let's model a scenario where an investor contributes $100 monthly to EPRT while reinvesting dividends:

• Year 1: Invest $100/month = $1,200 total. At a 3.7% yield, dividends add ~$45.60, boosting the portfolio to $1,245.60.
• Year 10: With reinvestment and a 3.7% average yield, the portfolio could exceed $20,000—even without price appreciation.
• Year 30: Assuming modest 3% annual price growth plus dividends, $100/month would grow to over $1.2 million.

The magic here lies in reinvesting dividends, which accelerate compounding. EPRT's consistent dividend history—rising from $0.295 to $0.30 per share in 2025—suggests the company prioritizes shareholder returns, a key trait for long-term investors.

Navigating Risk with EPRT

No investment is risk-free, and EPRT's stock price fluctuates. In June 2025, the share price ranged between $31.85 and $33.08, reflecting moderate volatility. Technical indicators show a mixed outlook:

• Bullish signals: The 20-day moving average (SMA) remains above the 60-day SMA, hinting at short-term momentum.
• Bearish trends: The 60-day SMA lags behind the 200-day SMA, suggesting caution for long-term holders.

Investors can mitigate risk by dollar-cost averaging—investing $100 monthly regardless of price swings. This strategy smooths out volatility and reduces the impact of timing the market.

Timing the Dividend Cycle

EPRT's next dividend, $0.30 per share, is payable on July 11, 2025, with an ex-dividend date of June 30. Investors buying shares before this date qualify for the payout. For those contributing monthly, aligning purchases with ex-dividend dates can boost early returns.

A Look Ahead: EPRT's Earnings and Outlook

EPRT's Q2 2025 earnings report, due July 23, will be critical. Strong performance could lift the stock price and potentially increase dividends. Analysts are watching EPRT's portfolio of grocery-anchored shopping centers and net-lease properties, which have shown resilience during economic shifts.

Investment Advice: A Structured Approach

1. Start Small, Stay Consistent: Dedicate $100/month to EPRT via a retirement account like an IRA.
2. Reinvest Dividends: Use reinvestment plans (DRIPs) to maximize compounding.
3. Diversify: EPRT's REIT exposure complements other asset classes but shouldn't be your sole retirement investment.
4. Monitor Technicals: Use moving averages to gauge entry/exit points, but prioritize long-term holding.

Conclusion

EPRT's dividend yield and real estate focus make it a solid candidate for retirement savings, even with small monthly contributions. While short-term volatility exists, the power of compounding—especially when paired with reinvested dividends—can turn $100 a month into a robust nest egg over time. For disciplined investors willing to think long-term, EPRT offers a tangible path to financial security.

Disclosure: This article is for informational purposes only. Consult a financial advisor before making investment decisions.