Better Monthly Dividend Stock: EPR Properties vs. STAG Industrial

Group 1: EPR Properties Overview - EPR Properties, formerly known as Entertainment Properties Trust, invests in assets designed to bring consumers together in group settings, such as amusement parks and movie theaters [2] - The company faced significant challenges during the coronavirus pandemic, leading to a suspension of its dividend for about a year to maintain liquidity [3] - Currently, EPR's rent roll is heavily tied to movie theaters, which have seen a decline in performance, with a rent coverage ratio of 1.5x compared to 1.7x in 2019 [4] Group 2: Financial Performance - Adjusted funds from operations (FFO) for EPR fell year over year through the first nine months of 2024, indicating potential challenges for the full year [5] - The adjusted FFO payout ratio was 66% in the third quarter, suggesting sufficient room to manage adversity, but investor sentiment appears to be negative regarding the turnaround [6] Group 3: STAG Industrial Overview - STAG Industrial focuses on acquiring industrial assets using a net lease approach, where tenants cover most operating costs, and targets second-tier markets to reduce competition [7] - The REIT has consistently increased its dividend annually for over a decade, with a 10-year annualized growth rate of just under 2% [8] Group 4: Investment Comparison - For investors seeking reliable income, STAG is likely the better option due to its consistent performance and lower risk profile compared to EPR [10] - EPR is in the process of turning its business around, but it remains a work in progress, requiring close monitoring for those willing to accept the associated risks [11]