EPR Properties is a real estate investment trust that focuses on experiential properties such as movie theaters, amusement parks, eat-and-play centers, and ski resorts. With a dividend yield of 7.3%, EPR Properties has caught the attention of investors. RBC Capital analyst Michael Carroll recently upgraded his rating for EPR to buy from hold, citing the company’s ability to navigate through tough operating conditions, including the Covid-19 pandemic and actors/writers strikes. Carroll believes that EPR is in a better position to deliver favorable results, especially as the headwinds are dissipating. He expects the theatrical box office to reaccelerate in the future, which will drive higher percentage rents and strengthen the tenant base. Despite concerns about EPR’s exposure to theaters, management plans to reduce this exposure over time. Carroll also mentioned that worries about AMC, one of EPR’s key tenants, are starting to diminish with initiatives such as capital raises and debt refinancing. Additionally, EPR’s high dividend yield is supported by its strong adjusted funds from operations payout ratio and solid balance sheet, providing investors with some level of comfort.
2. Energy Transfer
Energy Transfer, a limited partnership, offers investors a dividend yield of 8%. With a recent quarterly cash distribution of 32 cents per unit, the company has shown year-over-year growth of 3.2%. Stifel analyst Selman Akyol praised Energy Transfer’s Q2 results, highlighting better-than-anticipated EBITDA and numerous growth opportunities in its Permian to Gulf Coast value chain. Akyol is optimistic about the future of natural gas as it is expected to play a significant role in supplying energy to artificial intelligence data centers. He also pointed out that Energy Transfer is benefiting from increased demand from utilities in states like Texas and Florida, which offer attractive growth prospects due to potential data centers and population growth. Akyol maintains a buy rating on Energy Transfer stock with a price target of $19, reflecting his confidence in the company’s positioning and opportunities for growth.
3. Walmart
Walmart, the big-box retailer, has continued to impress investors with its strong performance in the second quarter of fiscal 2025. The company raised its full-year outlook and rewarded shareholders with dividends and share repurchases. Walmart increased its dividend by 9% earlier this year, marking the 51st consecutive year of dividend hikes. Baird analyst Peter Benedict reiterated a buy rating on Walmart and raised the price target following the second-quarter results. Benedict highlighted Walmart’s ability to gain market share despite a challenging macroeconomic environment, thanks to its focus on value and convenience. He emphasized the significant digital growth in U.S. comps and the contribution of higher margin advertising and membership income streams to the company’s earnings before interest and taxes growth. Walmart’s return on investment also improved, driven by investments in automation and generative AI. Benedict’s track record as an analyst demonstrates his ability to provide profitable recommendations with an average return of 15.9%.
Dividend-paying stocks like EPR Properties, Energy Transfer, and Walmart offer investors the opportunity to earn attractive returns in a low-interest-rate environment. It is crucial for investors to consider the recommendations of top analysts when selecting dividend stocks with strong financials. By choosing companies with solid balance sheets, positive growth prospects, and a history of dividend hikes, investors can build a diversified portfolio that generates consistent income and long-term wealth.