Investors Eye Dividend Stocks Amid Market Pullback

Investors are finding great opportunities in dividend stocks as major market indices remain near all-time highs. General Motors and EPR Properties stand out with attractive features despite some headwinds in the market.

Date: 28-02-2025

AI Rating: 7

Stock Market Overview
The latest market report indicates a slight pullback in the stock market; however, major index performance is still relatively strong, hovering close to their all-time highs. As the market stabilizes, investors are keenly looking at dividend stocks offering undervalued opportunities.

General Motors Analysis
General Motors (NYSE: GM) has made significant moves by announcing a 25% increase in its quarterly dividend alongside a new $6 billion stock repurchase program. The total of buybacks is set to reach $22 billion within two years, showcasing the company's commitment to enhancing shareholder value. Despite general market headwinds, GM's planned $11 to $12 earnings per share (EPS) for 2025 indicates strong potential and underlines the stock's current valuation, trading at over four times forward earnings. Despite challenges like possible tariff impacts, GM exhibits a favorable risk-reward profile for long-term investors.

EPR Properties Analysis
EPR Properties (NYSE: EPR), a real estate investment trust, has showcased solid performance, reporting a 5% growth in adjusted funds from operations (FFO) in Q4, representing a stable earnings measure for REITs. With a current 6.9% dividend yield and a recently announced 3.5% dividend increase heading into 2025, EPR is opting for a cautious growth strategy in light of high interest rates, focusing on selective acquisitions. Its efforts to lower risk exposure in movie theater rentals are prudent, given the industry's unpredictability.

Conclusion
Both GM and EPR represent investment opportunities with strong management strategies aimed at boosting long-term shareholder value through dividends and strategic growth. Investors should consider these stocks as potentially attractive components of a dividends-focused portfolio.

Stocks: GM EPR TSLA