EPR, MO, and BTI: The Dividend Kings Offering Sturdy Yields and Stock Price Gains

In today’s market, dividend investors often face a tough choice: high-yield stocks that risk becoming yield traps due to poor performance, or growth stocks with solid returns but minimal income. However, a select group of dividend stocks is managing to offer the best of both worlds—strong yields and solid performance. Not only are these stocks the so-called ‘Dividend Kings’, but they’ve also provided rather decent stock price appreciation in recent months.

EPR Properties (EPR), Altria (MO), and British American Tobacco (BTI) are three dividend stocks worth watching, each offering an attractive yield of over 6%. Unlike many high-yield plays driven by declining share prices, these names have delivered substantial gains over the past year, making them standouts in the current landscape.

EPR Properties (NYSE:EPR)

While quarterly dividends are appreciated, monthly dividends offer even greater appeal—and that’s precisely what EPR Properties provides. The stock currently offers an attractive 6.1% yield, nearly five times higher than the S&P 500 (SPX). Importantly, this yield isn’t the result of a declining share price; EPR has been a strong performer, climbing 40% over the past 12 months.

Despite this impressive rally, the stock remains reasonably valued, trading at just 11x forward funds from operations (FFO)—a key valuation metric for real estate investment trusts (REITs).

As a firm, EPR specializes in owning and developing experiential properties across the U.S. Its portfolio includes a wide range of venues such as movie theaters, fitness centers, “eat-and-play” destinations (like bowling alleys and golf entertainment venues such as TopGolf), amusement parks, water parks, and ski resorts. With 331 properties and over 200 tenants throughout the U.S. and Canada, EPR benefits from a broad and diversified income base.

The company has paid a dividend for 27 consecutive years. However, it should be noted that while this is a monthly dividend payer, the company didn’t pay a dividend for 15 months during 2020 and 2021 as it grappled with the effects of the COVID pandemic. While this is a concern worth being aware of, I don’t think it’s a cause for significant worry going forward as the pandemic and the lockdowns presented an extreme, unprecedented scenario for all businesses to deal with, especially ones like EPR that own experiential properties that require people to be out and about to be successful. Since resuming dividend payouts in July 2021, EPR has been paying these monthly dividends consistently and incrementally increasing the payouts over time.  

I’m bullish on this unique REIT based on its strong momentum over the past year, inexpensive valuation, 6%+ dividend yield, and attractive monthly payout schedule, making it a strong option for income investors.

Is EPR a Good Stock to Buy?

EPR earns a Hold consensus rating based on three Buys, five Holds, and two Sell ratings assigned in the past three months. The average EPR stock price target of $54.75 implies ~3% downside potential from current levels.

See more EPR analyst ratings

Altria (NYSE:MO)

Unlike EPR, Altria Group—the parent company of Marlboro cigarettes in the U.S., as well as electronic cigarette brand NJOY, and on! nicotine pouches—doesn’t pay a monthly dividend. Instead, it follows the more traditional quarterly schedule. However, it makes up for that with an even higher yield of 6.8%, surpassing EPR’s payout. And importantly, this yield isn’t the result of weak performance—Altria shares have climbed ~27% over the past year.

Beyond its generous yield, Altria offers exceptional dividend reliability. As a Dividend King, the company has increased its dividend for 55 consecutive years—a testament to its long-term commitment to shareholders.

Altria is also returning capital through share buybacks. In Q1 2025, the company repurchased $326 million worth of stock, leaving $674 million remaining under its current authorization, which it aims to complete by the end of the year.

Shares of Altria are also cheap, trading at just 11x earnings. This represents a significant discount to the broader market as the S&P 500 currently trades at roughly 21x. 

While tobacco companies are rarely associated with high growth, it’s important to note that Altria is not a business in decline. The company is projecting steady, if modest, earnings per share growth of 2–5% for 2025. Notably, Altria is seeing strong momentum in its smokeless products segment—its on! nicotine pouches registered 18% year-over-year shipment growth in the most recent quarter, signaling a fruitful long-term market offering.

I remain bullish on Altria, driven by its nearly 7% dividend yield, its remarkable track record of consistent dividend growth, and its attractive, undemanding valuation.

Is Altria Group a Buy, Sell, or Hold?

MO earns a Hold consensus rating based on three Buys, three Holds, and two Sell ratings assigned in the past three months. MO’s average stock price target of $56.86 implies ~4% downside potential from current levels over the coming year.

See more MO analyst ratings

British American Tobacco (NYSE:BTI)

Like Altria, British American Tobacco is a global leader in tobacco and nicotine products, delivering impressive returns—shares are up ~55% over the past 12 months. The company owns iconic cigarette brands, such as Lucky Strike, and markets Camel, American Spirit, and Newport in the U.S. Its portfolio also includes next-generation products, including Vuse vapor devices and Velo nicotine pouches.

BTI currently offers an appealing dividend yield of 6.2%, paid quarterly. The company has a strong track record of 26 consecutive years of dividend growth on a GBP basis, though U.S. investors should note that payouts may vary in USD terms due to currency fluctuations.

Valuation-wise, BTI appears attractively priced, trading at just 10.4x projected 2025 earnings—slightly below Altria’s multiple and roughly half the valuation of the broader market. In addition to its dividend, BTI is actively returning capital to shareholders through stock buybacks. Following the partial sale of its stake in Indian conglomerate ITC, the company raised its 2025 buyback program to £1.1 billion.

I’m bullish on BTI due to its strong yield, consistent dividend history, sizable share buyback program, and compelling valuation.

What is the Price Target for BTI Stock?

On Wall Street, BTI stock carries a Moderate Sell consensus rating based on coverage from just two analysts.

According to Rashad Kawan from Morgan Stanley, BTI is rated a Sell with a price target of $35.50, indicating approximately 25% downside risk in BTI stock over the coming months. In his most recent research note, Kawan reaffirmed his Sell rating based on BTI’s latest earnings release, published in February of this year.

Meanwhile, John Eade from Argus Research issued a Hold rating on BTI at the turn of the year and has not changed his stance since.

Three Strong Choices for Income Investors

In today’s market, it’s rare to find stocks that offer both attractive dividend yields and strong performance, but EPR Properties, Altria, and British American Tobacco all manage to deliver on both fronts. I’m bullish on all three and consider them strong picks for income-focused investors. Each stock offers a dividend yield above 6%, trades at a reasonable valuation, and has posted impressive gains over the past year, making them far from typical yield traps.

Among the three, my top picks are EPR and Altria. EPR stands out for its monthly dividend payments, differentiated business model, and diverse revenue streams. While both Altria and BTI are compelling options, I give the edge to Altria due to its exceptional track record of consistent dividend growth spanning more than five decades.