Is EPR Properties a Great Dividend Stock?
High-yield real estate investment trust (REIT) EPR Properties Trust (NYSE: EPR) has evolved from its early days when it focused on movie theaters and was known as Entertainment Properties Trust. Now a far more diversified landlord, it has increased its dividend for nine consecutive years. Add in a 6% yield, roughly three times what you'd get from an S&P 500 index fund, and there's a lot to like here. But is EPR a great dividend stock?
When EPR was founded, it primarily owned movie theaters, with a sliver of exposure to entertainment assets (such as golf clubs). That meant EPR was almost wholly dependent on the ups and downs of the movie business. Such a focused approach comes with notable diversification issues, including that there is a limited number of large theater chains (the REIT's customers) in the country and only just so many locations worth owning. So it's a positive that EPR looked to broaden its portfolio.
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Source Fool.com
