Turn $1,000 into $58.55 in Annual Passive Income with These High-Yielding Dividend Stocks
High-Yielding Dividend Stocks for August: EPR Properties and Vici Properties
For investors looking to generate passive income, high-yield dividend stocks like EPR Properties and Vici Properties are an attractive option. These real estate investment trusts (REITs) focus on experiential real estate, leasing properties back to operating tenants under long-term, triple net leases (NNNs), providing stable cash flow.
EPR Properties owns a diversified portfolio of movie theaters, eat-and-play venues, health and fitness properties, attractions, and other entertainment spaces. The REIT’s recent investments include 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.
EPR Properties plans to invest $200 million to $300 million in new properties this year, including $106 million for experiential development and redevelopment projects it plans to fund over the next 18 months. These investments are expected to grow EPR’s funds from operations (FFO) and dividend payments.
EPR Properties’ High-Yielding Dividend Stock
EPR Properties has a monthly dividend yield of over 6%, with a recent payment of $0.295 per share, or $3.54 annually. This is easily covered by its stable portfolio, which is expected to generate $5 to $5.16 per share of FFO as adjusted this year. The REIT’s stable cash flow provides it with a cushion and surplus cash to invest in more experiential properties.
EPR Properties’ investment strategy focuses on acquiring underperforming or distressed assets and repositioning them for long-term growth. This approach has enabled the company to generate strong returns on its investments, which are then distributed as dividends to shareholders.
Vici Properties: A Fellow Experiential REIT
Fellow REIT Vici Properties also invests in experiential real estate, with a primary focus on market-leading gaming, hospitality, wellness, entertainment, and leisure destinations. It owns several iconic casinos along the Las Vegas Strip, including Caesars Palace Las Vegas, MGM Grand, and the Venetian Resort Las Vegas.
Vici Properties leases its properties under long-term NNN contracts with operating tenants, providing stable and rising rental income. A growing subset of its leases – 42% this year, rising to 90% by 2035 – link rents to inflation, ensuring that Vici’s revenue grows in line with the cost of living.
Vici Properties’ High-Yielding Dividend Stock
Vici Properties currently pays out $0.4325 per share each quarter in dividends, for a total of $1.73 annually. This is covered by its expected adjusted FFO of $2.35 to $2.37 per share this year. The REIT uses the cash it retains to invest in additional experiential properties.
Vici’s new investments help drive growth in both its FFO per share and its dividend payments. The company has secured two notable new investments this year: a loan of up to $510 million to fund the development of the North Fork Mono Casino & Resort in California, and a mezzanine loan related to the development of One Beverly Hills, a landmark luxury mixed-use development in California.
Why These High-Yielding Dividend Stocks Are Attractive
EPR Properties and Vici Properties offer attractive high-yield dividend stocks for investors seeking passive income. Their diversified portfolios of experiential real estate provide rising streams of rental income to pay dividends and invest in additional properties.
These REITs have a strong track record of growing their FFO and dividend payments, with EPR raising its payout by 3.5% earlier this year and Vici increasing its payment for seven straight years (each year since its formation). Their long-term leases provide stable cash flow, ensuring that investors can rely on these REITs as a source of regular income.
Conclusion
For investors seeking high-yielding dividend stocks with strong growth potential, EPR Properties and Vici Properties are compelling options. These experiential REITs offer rising streams of rental income to pay dividends and invest in additional properties. With their long-term leases providing stable cash flow and their recent investments driving growth, these REITs are well-positioned for continued success.
Investors should carefully consider the investment strategy and potential risks before investing in these high-yielding dividend stocks. However, for those seeking passive income with strong growth potential, EPR Properties and Vici Properties are certainly worth considering.
