10 Very High Yield Dividend Stocks With Upside Potential

4. EPR Properties (NYSE:EPR)

Number of Hedge Fund Holders: 26

Dividend Yield as of July 8: 8.18%

EPR Properties (NYSE:EPR) is a Missouri-based real estate investment trust company that mainly invests in entertainment properties, including movie theaters, amusement parks, and ski resorts. The company’s CEO recently highlighted that the high cost of capital has been a challenge due to increased borrowing expenses. However, its current opportunities are exceeding its level of capital. He also stated that movie theater attendance has returned to pre-Covid levels, rejecting the idea that streaming will overtake the theater industry. As of March 31, 2024, the company has 135 theater properties.

What gives EPR Properties (NYSE:EPR) an edge over its competitors is its diversified portfolio, allowing it to outperform its peers. The theatre segment is its largest asset, accounting for 37% of annualized EBITDARE. The company has invested approximately $2 billion in theatrical properties over two decades. Analysts aren’t too fond of this heavy reliance on theatrical properties, as it limits growth in other areas. The company’s exposure to movie theaters proved problematic in 2020 when it had to cut its dividend due to the struggling state of movie chains as the global health crisis unfolded. However, in its final report for 2023, the company announced plans to boost investments in other types of properties and envisions a $100 billion investible universe of properties it could potentially pursue. Street analysts have maintained a $45.10 price target on the stock, which reflects an 8.2% upside potential.

EPR Properties (NYSE:EPR) can be a good addition to dividend portfolios because of the company’s diversified portfolio and monthly dividends. It currently offers a monthly dividend of $0.285 per share for a dividend yield of 8.18%.

As per Insider Monkey’s database of Q1 2024, 26 hedge funds tracked by Insider Monkey owned stakes in EPR Properties (NYSE:EPR), up from 25 in the previous quarter. These stakes have a total value of nearly $184 million. Among these hedge funds, Cliff Asness’ AQR Capital Management was the company’s leading stakeholder.