This Monthly Payer Is Restarting Dividends And Paying A 5.5% Yield

The 2020 economic shutdown produced wildly different results for businesses, depending on their positions in the economy. Some sectors, such as technology, sailed through the shutdown without a scratch. Other economic sectors, such as travel and tourism, took a tremendous hit.

Is now the time to shift from the 2020 winners into stocks that most stand to benefit from a reopening economy? I want to discuss one stock that illustrates the extremes of the shutdown and recovery.

Cinema or theater in the auditorium,business background.

EPR Properties (PPR) is a REIT that owns “experiential” and education-focused properties. This table shows the portfolio breakdown.

Before the pandemic, EPR had a 20-plus year track record of steadily growing dividend payments. However, the pandemic-triggered economic shutdown forced an almost 100% closure of the operations of EPR’s tenant companies. The company suspended its monthly dividend in May 2020.

The pandemic turned EPR from a “buy and hold forever” dividend stock to one to sell because no one could predict the company’s future. I did recommend to my subscribers to pick up some EPR preferred shares, and we made some nice gains as the preferreds recovered from a post-crash low of $16 per share all the way back to par.

On July 13, I was happy to read that EPR will resume paying common stock dividends. Here are a couple of excerpts from the press release:

  • “As of June 30, 2021, approximately 99% of the Company’s theatre and 98% of the Company’s non-theatre locations were open, excluding normal seasonal closings. Certain assets remain closed in Canada pursuant to local restrictions.”
  • “For the second quarter of 2021 the Company collected approximately 82% of contractual cash revenue. This cash collection level is in excess of the high end of the previously announced guidance for the second quarter of 75%-80% and continues the favorable trajectory of cash collections the Company is experiencing.”
  • “In addition to the collections above, collections of deferred rent and interest during the second quarter from accrual basis tenants totaled $16.3 million, bringing the total for such collections to $45.9 million for the six months ended June 30, 2021.”
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Disclaimer: The information contained in this article is neither an offer nor a recommendation to buy or sell any security, options on equities, or cryptocurrency. Investors Alley Corp. and its ...

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