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EPR Properties (NYSE: EPR) is a company focused on properties designed for experiential and educational purposes. One of the benefits of owning its stock has been its dividend, which has increased for four consecutive years.
EPR is a real estate investment trust (REIT), which means it must pay out at least 90% of its taxable net income as dividends to retain that status. That makes it highly likely that payouts will continue. As the dividend has become more generous, it might surprise investors how little it takes to generate more than $1,000 in annual dividends in this stock.
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Working with whole shares, 269 shares purchased for $15,182 will generate $1,001 in annual dividends.
This amounts to an annual dividend of $3.72 per share with a yield of about 6.6%. That is far above the S&P 500 average of 1.1%. Moreover, it is one of the few stocks paying monthly dividends, which might make it especially appealing to income investors.
That payout brings investors security, though the business revolves heavily around fun. Its experiential properties are designed for recreational purposes.
This can include theaters operated by theater chain AMC, or Topgolf locations. EPR even owns some well-known venues, such as City Museum in St. Louis and the Titanic Museum, attractions like the one in Pigeon Forge, Tennessee. In April, it purchased seven of the parks previously owned by Six Flags Entertainment.
Additionally, the REIT maintains a portfolio of private schools and early childhood education centers. However, the focus more recently has been on the experiential properties.
Indeed, one also cannot discuss experiential properties without discussing COVID-19. Not surprisingly, the pandemic forced EPR tenants to shut down nearly all of their properties in early 2020.
Even though 93% of its non-theater properties and 63% of its theaters reopened by November of that year, rental revenue did not rebound until well into 2021. It also had to suspend its dividend between May 2020 and August 2021. That interruption is why the company's streak of raising dividends is only four years old.
Today, the more recent concern has been the rise in interest rates. This is critical for most REITs, as rising interest costs could reduce profits or make some business deals uneconomical.
EPR remains on track to foster growth despite the rising rates. In the first six months of 2026, it reported revenue of more than $377 million, a 7% increase compared with the same year-ago period.
Its net income during the first two quarters of 2026 was $117 million. That fell from $129 million one year ago, but only because of a $26 million gain on its real estate transactions in 2025.
For REITs, funds from operations (FFO) is the most meaningful metric for income investors. During the trailing 12 months, EPR neared $5.23 per share in FFO income. Since that is more than the $3.72-per-share annual dividend cost, the company can afford to maintain and increase the dividend, with capital available for other purposes.
Moreover, its price-to-earnings (P/E) ratio stands at just 18. This is near post-pandemic lows and offers investors a chance to buy this lucrative income stream cheaply, bolstering the investment case for EPR Properties stock.
The ability to buy an annual income stream of just over $1,000 for just over $15,182 makes EPR an attractive choice.
Indeed, as a monthly dividend stock yielding more than 6%, this stock is probably best suited for income investors. Also, rising interest rates and the legacy of the pandemic may discourage some investors.
Nonetheless, it offers its shareholders a huge, sustainable return, reestablishing a history of payout growth. Additionally, customers will probably keep visiting its experiential and educational properties, making it likely that the steady payout and stock price growth will continue.
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Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends EPR Properties. The Motley Fool recommends Six Flags Entertainment. The Motley Fool has a disclosure policy.
All It Takes Is $15,182 Invested in This High-Yield Dividend Stock to Generate Over $1,000 in Yearly Dividends was originally published by The Motley Fool
