Why I Finally Bought This Magnificent 5.5%-Yielding Dividend Stock for Passive Income

• NNN REIT has a precise straightforward concern model.

• The REIT's high-yielding dividend is connected a rock-solid foundation.

• It has plentifulness of country to proceed increasing its payout.

• 10 stocks we similar amended than NNN REIT ›

My apical fiscal extremity is to make capable passive income to screen my basal surviving expenses. I'm starting to interest astir the imaginable interaction AI volition person connected my income. That's starring maine to absorption connected making investments that volition make passive income to assistance alleviate this concern.

Investing successful high-quality dividend stocks is the instauration of my concern strategy. While I already ain several, I precocious added NNN REIT (NYSE: NNN) to my portfolio. Here's wherefore I deliberation it tin assistance maine execute my extremity of reaching fiscal state done passive income.

NNN REIT is astir arsenic straightforward an concern arsenic you'll find. It's a existent property concern spot (REIT) focused connected single-tenant properties secured by semipermanent triple-net leases (NNN). It chiefly invests successful retail and work properties, including automotive work locations (18.4% of its yearly basal rent), convenience stores (16.2%), and restaurants (8% constricted work and 6.5% full-service).

These properties thin to nutrient a reliable income watercourse with debased volatility. Tenants screen spot operating expenses, taxes, and regular superior expenditures. Meanwhile, NNN leases thin to person 10- to 20-year presumption and typically escalate rents astatine a debased single-digit yearly rate.

While NNN REIT focuses connected retail properties, it strives to person a well-diversified portfolio to further little its hazard profile. It presently owns astir 3,700 properties crossed 50 states, leased to much than 400 nationalist and determination tenants successful implicit 35 lines of trade. Its largest tenants are 7-Eleven (4.3% of its rent), Mister Car Wash (3.9%), and Dave & Buster's (3.7%). It owns properties successful main thoroughfare locations, providing a beardown marketplace for replacement tenants if the existent tenant defaults oregon doesn't renew.

NNN REIT's dividend presently yields much than 5.5%. That's higher than the REIT sector's mean of astir 4.4% and the S&P 500's astir 1.1% dividend yield. As a result, I tin make much passive income per dollar invested successful the REIT than with galore different alternatives.

That high-yielding payout is connected rock-solid ground. NNN REIT presently has a dividend payout ratio of astir 70% of its adjusted funds from operations (FFO). That's little than galore different nett lease REITs, arsenic Realty Income (NYSE: O), for example, has a payout ratio of astir 75% of its adjusted FFO.