This 7.5%-Yielding Monthly Dividend Stock Could Be Your Ticket to an Enriching Future

Core Viewpoint - EPR Properties is positioned as a strong investment opportunity due to its high dividend yield and potential for total returns, particularly in the experiential real estate sector [1][11]. Company Overview - EPR Properties is a real estate investment trust (REIT) that focuses on owning experiential properties, including movie theaters and entertainment venues, with a portfolio of 352 locations leased to over 200 tenants [3][6]. Financial Performance - The REIT expects to generate between $4.80 and $4.92 per share of funds from operations (FFO) this year, with a current monthly dividend of $0.285 per share, resulting in an annual dividend of $3.42 and a payout ratio of around 70% [4][9]. - EPR Properties has a dividend yield of 7.5%, significantly higher than the S&P 500's yield of less than 1.5%, indicating a strong income potential for investors [5]. Investment Strategy - The company has invested over $6.9 billion in its real estate portfolio and sees a market opportunity exceeding $100 billion for acquiring and developing experiential real estate [6][9]. - In 2023, EPR Properties has invested $214.6 million in experiential properties and plans to spend between $225 million and $275 million for the full year [7][9]. Growth Potential - EPR Properties anticipates a 3.2% increase in FFO per share this year and has already raised its dividend by 3.6% [8]. - The REIT aims for a comfortable annual growth rate of 3% to 4% in FFO, which could support similar dividend growth [9][11]. Capital Management - The company has $35.3 million in cash and only $169 million outstanding on its $1 billion credit facility, providing financial flexibility for future investments [9]. - EPR Properties has sold $65.1 million in properties this year, targeting to sell an additional $70 million to $100 million in non-core properties to fund new investments [10].