Got $5,000 to Invest? This High-Yielding Monthly Dividend Stock Could Turn It Into Nearly $350 of Annual Passive Income.

Matt DiLallo, The Motley Fool

Sat, May 10, 2025, 7:06 AM 5 min read

• EPR Properties generates precise unchangeable rental income.

• That currency travel supports its high-yielding monthly dividend and investments to turn its portfolio.

• The REIT's maturation investments alteration it to summation its dividend.

• 10 stocks we similar amended than EPR Properties ›

Investing wealth successful high-yielding dividend stocks tin beryllium a large mode to make passive income. Their higher yields alteration investors to gain much wealth from each dollar they invest.

EPR Properties (NYSE: EPR) is a great enactment for those seeking a lucrative passive income stream. The existent property concern spot (REIT) presently has a dividend output approaching 7%. It could crook a $5,000 concern into astir $350 of yearly passive income astatine that rate. Even better, the REIT pays a monthly dividend, making it appealing for those seeking regular passive income to assistance screen their recurring expenses. Here's a person look astatine this high-yielding REIT.

EPR Properties specializes successful investing successful experiential existent estate. It owns movie theaters, eat-and-play venues, fittingness and wellness properties, attractions, and different akin properties. It leases these properties to tenants that volition run the experiences. It besides has a tiny portfolio of acquisition properties (early acquisition centers and backstage schools). Most of its leases are triple nett (NNN), which provides very unchangeable rental income due to the fact that the tenant covers each operating costs, including regular maintenance, existent property taxes, and gathering insurance.

The REIT pays out a blimpish percent of its predictable rental income successful dividends. In 2025, the institution expects to make betwixt $5 and $5.16 per stock of funds from operations (FFO) arsenic adjusted, a 4.3% summation from past twelvemonth astatine the midpoint. EPR Properties presently pays a monthly dividend of $0.295 per stock ($3.54 annually). That gives it a dividend payout ratio of astir 70%.

That blimpish payout ratio gives the REIT a bully cushion portion enabling it to clasp meaningful excess escaped currency travel to money caller experiential spot investments. EPR Properties besides has a coagulated investment-grade equilibrium expanse with tons of liquidity. It ended the archetypal 4th with $20.6 cardinal successful currency and lone $105 cardinal outstanding connected its $1 cardinal recognition facility.

EPR Properties' combination of unchangeable currency flow, blimpish payout ratio, and rock-solid equilibrium expanse puts its high-yielding dividend connected a precise firm foundation.

The REIT steadily invests wealth to heighten and grow its portfolio. It aims to walk betwixt $200 cardinal and $300 cardinal this year. The institution invested $37.7 cardinal during the archetypal quarter, including buying an attraction spot successful New Jersey for $14.3 cardinal (Diggerland USA, the lone construction-themed attraction and h2o parkland successful the country). The remainder of its investments were connected build-to-suit improvement and redevelopment projects, including immoderate Andretti Indoor Karting eat-and-play venues that volition unfastened implicit the adjacent year.