Investing in high-yield dividend stocks is a great way to generate passive income. For example, investing $1,000 in the following companies could yield nearly $60 of annual dividend income:
|
Dividend Stock |
Amount Invested |
Recent Yield |
Annual Dividend Income |
|---|---|---|---|
|
EPR Properties (NYSE: EPR) |
$500 |
6.42% |
$32.10 |
|
Vici Properties (NYSE: VICI) |
$500 |
5.29% |
$26.45 |
|
Total |
$1,000 |
5.85% |
$58.55 |
Data sources: Google Finance and author’s calculations. Dividend yields are as of July 31.
Here’s a closer look at these high-quality, high-yielding dividend stocks.
EPR Properties is a real estate investment trust (REIT) focused on experiential real estate. The company owns a diversified portfolio of movie theaters, eat-and-play venues, health and fitness properties, attractions, and other entertainment spaces.
It leases these properties back to operating tenants, primarily under long-term, triple net leases (NNNs). Those leases provide it with very stable cash flow because tenants cover all property operating costs (including routine maintenance, real estate taxes, and building insurance).
The REIT expects its stable portfolio to generate $5 to $5.16 per share of funds from operations (FFO) as adjusted this year. That easily covers its monthly dividend payment of $0.295 per share, or $3.54 annually. It also provides a cushion and surplus cash to invest in more experiential properties.
EPR Properties invested $86.3 million into new properties in the first half of this year. Recent investments included acquiring land for $1.2 million and providing $5.9 million in mortgage financing secured by improvements at a health and wellness property in Georgia. It also acquired land for a new eat-and-play property development in Virginia for $1.6 million, which has an expected total cost of $19 million and an anticipated completion in 2026.
The company plans to invest $200 million to $300 million in new properties this year. This includes $106 million for experiential development and redevelopment projects it plans to fund over the next 18 months.
These investments should grow EPR’s FFO and dividend. The REIT raised its payout by 3.5% earlier this year.
Fellow REIT Vici Properties also invests in experiential real estate. However, its primary focus is on market-leading gaming, hospitality, wellness, entertainment, and leisure destinations. For example, it owns several iconic casinos along the Las Vegas Strip, including Caesars Palace Las Vegas, MGM Grand, and the Venetian Resort Las Vegas.