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The Most Undervalued REIT, Yield 16%: EPR Properties

Published Sun, 15 Mar 2020 09:30:00 -0400 on Seeking Alpha

EPR has pulled back sharply due to the coronavirus.
Sometimes, lightning strikes and an investment has both a high current yield and strong dividend growth.
EPR set growth on the back burner for a couple of years. In 2020, they have substantial acquisitions in the pipeline.
With growth resuming in 2020, EPR enjoys the trifecta of a high current yield, strong dividend growth, and capital gain upside.
Co-produced with Beyond Saving
In a recent article, we noted that EPR Properties (EPR) hit the "sweet spot" of having a dividend that would be likely to continue growing. Sure enough, EPR announced they would be increasing their dividend for an 11th consecutive year to $4.59/year, up from $4.50/year.
Coronavirus Fears Creates a Unique Opportunity
EPR has been dumped by investors due to extreme coronavirus fears, as EPR has exposure to entertainment activities including movie theaters, TopGolf, ski slopes, water parks, and their newest addition - casinos. EPR's properties appeal to those who want to go do something. Mr. Market is acting as if all these activities will stop due to fear. EPR has lost 19% of its value over the past two weeks, creating a golden opportunity.
Data by YCharts
EPR's Strong Outlook
There are numerous reasons why we believe that EPR is the most attractive REIT opportunity in the market today. Having a monthly dividend, a 16% yield, and being well positioned to continue having regular dividend increases, creates the cherries on top.
Usually, high-quality dividend growth stocks do not make the cut for our portfolio, the reason being that most of them are extremely expensive and usually have very low yields.
EPR provides us a very high-quality portfolio, an attractive valuation, and having taken a couple of years of being net sellers. EPR is ready to return to growth in 2020. We cannot only get a quality high yield today but we also can look forward to more aggressive dividend growth in the future.
Solid Triple... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
SIX FLAGS ENTERTAINMENT 57.30   17.8 3.21 3.28 5.71
NATIONAL RETAIL PROPERTIES 54.39   35.8 1.52 2.06 3.81
REALTY INCOME 74.49   56.9 1.31 2.72 3.69
VAIL RESORTS 239.34   32.3 7.41 7.04 2.96


Older articles featuring Six Flags Entertainment (SIX):
Dividend Champions For March 2020
54 10-Year Dividend Payback Champions
A Quantitative Risk And Dividend Model
Dividend Champions For December 2019
Dividend Challenger Highlights: Week Of December 1
Weekly Update: 43 Dividend Hikes Declared November 25
Dividend Increases: November 18-22, 2019
Dividend Challenger Highlights: Week Of November 24
Dividend Increases for Ninth Consecutive Year at Six Flags
Six Flags Announces Quarterly Cash Dividend