Maximizing Passive Income: High-Yield Dividend Stocks to Buy in December 2025

As 2025 draws to a close, investors seeking resilient passive income streams are increasingly turning to high-yield dividend stocks that combine undervaluation, strategic reallocation, and sector-specific growth potential. Three REITs-Medical Properties Trust (MPW), Mid-America Apartment Communities (MAA), and W.P. Carey (WPC)-stand out as compelling candidates. These companies have demonstrated robust recovery efforts, disciplined capital management, and dividend growth trajectories that align with long-term income-focused strategies. Below, we dissect their financial health, market positioning, and strategic moves to justify their inclusion in a diversified dividend portfolio.

Medical Properties Trust (MPW): Conservative Payouts and Healthcare Sector Resilience

Medical Properties Trust (MPW) has emerged as a standout in the healthcare real estate sector, offering a 7.00% dividend yield as of December 2025. The REIT recently increased its quarterly dividend by 12% to $0.09 per share, reflecting confidence in its liquidity and operational stability. This conservative approach is underscored by a 69.2% NFFO payout ratio for Q3 2025, significantly lower than the sector median of 74.12%. Such a buffer ensures MPW can navigate economic uncertainties while maintaining its dividend.

MPW's strategic reallocation efforts further bolster its appeal. With $1.1 billion in liquidity as of November 2025, the company has launched a $150 million stock repurchase program to enhance shareholder value. Its portfolio, focused on medical office buildings and hospitals, benefits from the growing demand for healthcare infrastructure, a sector less susceptible to cyclical downturns. For income investors, MPW's combination of high yield, conservative payout ratios, and sector-specific tailwinds makes it a compelling buy.

Mid-America Apartment Communities (MAA): High-Yield with a Cautionary Lens

Mid-America Apartment Communities (MAA) has maintained its reputation as a dividend aristocrat, raising its payout for the 16th consecutive year in 2025. The latest increase to $1.53 per share (4.46% yield) reflects an 8.3% compounded growth over five years, though its 123.5% payout ratio raises concerns about sustainability. Despite this, MAA's strong balance sheet-with $814.7 million in liquidity and a net debt/EBITDA ratio of 4.2-provides a buffer against near-term risks.

The company's strategic reallocations are equally noteworthy. As of June 2025, MAA had $1.5 billion in active development projects, including a 336-unit multifamily complex in Charleston, South Carolina, expected to yield 6.1% stabilized NOI. Its 95.4% average physical occupancy and 41.0% resident turnover rate highlight operational excellence, even as macroeconomic headwinds persist. While the high payout ratio warrants caution, MAA's disciplined capital deployment and focus on high-growth markets position it as a high-yield play with long-term value creation potential.

W.P. Carey (WPC): Industrial Rebalancing and Sustainable Dividend Growth

W.P. Carey (WPC) has repositioned itself as a leader in the industrial and warehouse net-lease sector, a move that has driven its 5.6% dividend yield and 97% occupancy rate as of September 2025. The REIT recently increased its quarterly payout by 1.1% to $0.92 per share, with analysts projecting a more sustainable 77% payout ratio in 2026. This trajectory is supported by WPC's strategic divestiture of non-core assets (e.g., self-storage properties) to fund high-conviction investments in industrial and healthcare sectors.

WPC's portfolio now includes 65% industrial and warehouse assets, a sector benefiting from e-commerce growth and supply chain reconfiguration. Its 12.1-year weighted average lease term ensures long-term cash flow visibility, while its global tenant base (373 tenants across 26 countries) diversifies risk. For investors prioritizing stability and moderate yield, WPC's disciplined capital allocation and sector alignment make it a resilient addition to a passive income portfolio.

Strategic Portfolio Enhancement: Balancing Yield and Risk

While all three REITs offer attractive yields, their risk profiles differ. MPW's conservative payout ratio and healthcare focus make it the safest bet, while MAA's high yield comes with elevated payout risks. WPC strikes a middle ground, leveraging industrial sector growth to balance yield and sustainability. A diversified portfolio could allocate more heavily to MPW for stability, pair MAA with defensive assets to offset its payout concerns, and use WPC to capitalize on industrial tailwinds.

Conclusion

As 2025 enters its final stretch, income investors have a rare opportunity to lock in high yields from REITs with strong recovery narratives and strategic reallocations. Medical Properties Trust, Mid-America Apartment Communities, and W.P. Carey each offer unique advantages: MPW's healthcare resilience, MAA's disciplined growth, and WPC's industrial pivot. By carefully evaluating their payout ratios, liquidity positions, and sector dynamics, investors can construct a resilient dividend portfolio poised for 2026 and beyond.

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