These firms offer generous and consistently increasing dividends.
Investing in high-yield dividend stocks can effectively create passive income. For instance, putting $1,000 into the following companies may generate almost $60 in annual dividend income:
|
Dividend Stock |
Investment Amount |
Current Yield |
Annual Dividend Income |
|---|---|---|---|
|
EPR Properties (EPR -0.06%) |
$500 |
6.42% |
$32.10 |
|
Vici Properties (VICI 1.56%) |
$500 |
5.29% |
$26.45 |
|
Total |
$1,000 |
5.85% |
$58.55 |
Data sources: Google Finance and author’s calculations. Dividend yields are current as of July 31.
Here’s an in-depth look at these top-tier, high-yielding dividend stocks.
EPR Properties
EPR Properties is a real estate investment trust (REIT) dedicated to experiential real estate. The company maintains a diverse portfolio that includes movie theaters, eat-and-play venues, health and fitness facilities, attractions, and other entertainment spaces.
It primarily leases these properties back to operational tenants through long-term, triple net leases (NNNs), ensuring stable cash flow as tenants assume all property-related expenses (including maintenance, taxes, and insurance).
Financial Performance
The REIT anticipates its diverse portfolio will yield $5 to $5.16 per share in funds from operations (FFO) as adjusted this year, comfortably surpassing its monthly dividend payout of $0.295 per share, totaling $3.54 annually. This surplus also enables further investment in experiential properties.
In the first half of the year, EPR Properties allocated $86.3 million for new investments, such as acquiring land for $1.2 million and providing $5.9 million in mortgage financing for a wellness property in Georgia. They also purchased land for a new eat-and-play project in Virginia, expected to total $19 million by its 2026 completion.
Growth Potential
This year, EPR plans to invest between $200 million and $300 million in new properties, including $106 million for experiential developments and renovations planned over the next 18 months. Such investments are projected to enhance EPR’s FFO and dividends, with a recent 3.5% increase in its payout.
Vici Properties
Another notable REIT, Vici Properties, focuses similarly on experiential real estate, but emphasizes gaming, hospitality, wellness, and leisure destinations, owning iconic casinos on the Las Vegas Strip like Caesars Palace and MGM Grand.
Vici Properties uses long-term NNN leases with tenants, which currently have an average remaining term exceeding 40 years. A growing proportion of its leases—42% this year, aiming for 90% by 2035—are linked to inflation, providing stable and increasing rental income.
Investment and Dividends
Vici currently distributes dividends of $0.4325 per share quarterly, totaling $1.73 annually. Its predicted adjusted FFO ranges from $2.35 to $2.37 per share this year, facilitating further investments in experiential properties.
Recent notable investments include a loan of up to $510 million for developing the North Fork Mono Casino & Resort in California and a $450 million commitment for the One Beverly Hills project, enhancing its growth and strengthening shareholder returns.
Conclusion
Both EPR Properties and Vici Properties boast diverse and expanding portfolios of experiential real estate, providing increasing rental income streams for dividends and additional investments. They represent excellent opportunities for turning $1,000 into a growing source of passive dividend income this August.
Matt DiLallo holds interests in both EPR Properties and Vici Properties. The Motley Fool endorses EPR Properties, recommends Vici Properties, and adheres to a disclosure policy.
