These firms pay profitable and steadily rising dividends.
Investing in high-yield dividend shares is an effective way to generate passive earnings. For instance, investing $1,000 within the following firms might yield almost $60 of annual dividend earnings:
Dividend Inventory
Quantity Invested
Latest Yield
Annual Dividend Revenue
EPR Properties (EPR -0.11%)
$500
6.42%
$32.10
Vici Properties (VICI 1.56%)
$500
5.29%
$26.45
Complete
$1,000
5.85%
$58.55
Information sources: Google Finance and creator’s calculations. Dividend yields are as of July 31.
This is a better take a look at these high-quality, high-yielding dividend shares.
EPR Properties
EPR Properties is an actual property funding belief (REIT) targeted on experiential actual property. The corporate owns a diversified portfolio of film theaters, eat-and-play venues, well being and health properties, points of interest, and different leisure areas.
It leases these properties again to working tenants, primarily underneath long-term, triple internet leases (NNNs). These leases present it with very secure money stream as a result of tenants cowl all property working prices (together with routine upkeep, actual property taxes, and constructing insurance coverage).
Picture supply: Getty Pictures.
The REIT expects its secure portfolio to generate $5 to $5.16 per share of funds from operations (FFO) as adjusted this 12 months. That simply covers its month-to-month dividend cost of $0.295 per share, or $3.54 yearly. It additionally offers a cushion and surplus money to spend money on extra experiential properties.
EPR Properties invested $86.3 million into new properties within the first half of this 12 months. Latest investments included buying land for $1.2 million and offering $5.9 million in mortgage financing secured by enhancements at a well being and wellness property in Georgia. It additionally acquired land for a brand new eat-and-play property improvement in Virginia for $1.6 million, which has an anticipated complete value of $19 million and an anticipated completion in 2026.
The corporate plans to speculate $200 million to $300 million in new properties this 12 months. This contains $106 million for experiential improvement and redevelopment initiatives it plans to fund over the following 18 months.
These investments ought to develop EPR’s FFO and dividend. The REIT raised its payout by 3.5% earlier this 12 months.
Vici Properties
Fellow REIT Vici Properties additionally invests in experiential actual property. Nevertheless, its main focus is on market-leading gaming, hospitality, wellness, leisure, and leisure locations. For instance, it owns a number of iconic casinos alongside the Las Vegas Strip, together with Caesars Palace Las Vegas, MGM Grand, and the Venetian Resort Las Vegas.
The REIT additionally leases its properties underneath long-term NNN contracts with working tenants. These leases at the moment have a weighted common remaining time period of over 40 years. A rising subset of its leases — 42% this 12 months, rising to 90% by 2035 — hyperlink rents to inflation. Its technique of investing in massive properties with long-term, inflation-linked leases offers it with secure and rising rental earnings.
Vici Properties at the moment pays out $0.4325 per share every quarter in dividends, for a complete of $1.73 yearly. It produces loads of money to cowl that cost stage — $2.35 to $2.37 per share of adjusted FFO is anticipated this 12 months. The REIT makes use of the money it retains to spend money on further experiential properties.
The corporate has secured two notable new investments this 12 months. It has agreed to offer a mortgage of as much as $510 million to fund the event of the North Fork Mono On line casino & Resort in California. Moreover, Vici has dedicated to investing $450 million right into a mezzanine mortgage associated to the event of One Beverly Hills, a landmark luxurious mixed-use improvement in California.
Vici’s new investments assist drive progress in each its FFO per share and its dividend. The REIT has raised its cost for seven straight years (annually since its formation). It has grown the payout at a 7.4% compound annual charge throughout that interval, outpacing the two.3% common of different REITs targeted on properties secured by NNNs.
Wonderful methods to generate passive dividend earnings
EPR Properties and Vici Properties personal diversified and rising portfolios of experiential actual property. These properties present them with rising streams of rental earnings to pay dividends and spend money on further properties. That makes them nice methods to show $1,000 right into a rising stream of passive dividend earnings this August.
Matt DiLallo has positions in EPR Properties and Vici Properties. The Motley Idiot has positions in and recommends EPR Properties. The Motley Idiot recommends Vici Properties. The Motley Idiot has a disclosure coverage.
