3 Top Dividend Stocks Yielding 5% or More to Boost Your Passive Income

In an era where passive income streams are increasingly sought after, dividend stocks remain a cornerstone of wealth-building strategies. With yields over 5% becoming scarce, investors must prioritize stability, growth potential, and dividend resilience. Below are three standout picks—each a REIT (Real Estate Investment Trust)—that offer compelling yields, proven track records, and strategic advantages to fuel your income portfolio.

1. Four Corners Property Trust (FCPT): Restaurants and Retail Stability

Dividend Yield: ~5%
Key Strengths:
- Tenant-Driven Cash Flow: FCPT owns 1,200 properties leased to 163 brands, with Darden Restaurants (Olive Garden, Longhorn) as its top tenant. Long-term net leases (7.3-year average) ensure predictable income, as tenants cover all operating costs.
- Growth Momentum: Recent acquisitions of $9.8 million in properties—such as Chuy’s and Outback Steakhouse locations—expand its footprint. The dividend has risen 2.9% annually since its 2015 spin-off, with a total increase of 45%.

Risk Consideration: Over-reliance on Darden Restaurants (34.4% of rent) introduces concentration risk, though diversification across 163 tenants mitigates this.

2. VICI Properties (VICI): Inflation-Linked Income

Dividend Yield: 5.3%
Key Strengths:
- Experiential Real Estate Focus: VICI owns casinos, entertainment complexes, and mixed-use properties. 42% of rents are tied to inflation in 2025, rising to 90% by 2035—a shield against rising costs.
- Strategic Acquisitions: The REIT uses sale-leaseback deals and reinvestment in existing assets to drive growth. Dividends have grown at a 7% CAGR for seven straight years.

Risk Consideration: Overexposure to volatile sectors like gaming and entertainment could pressure cash flows during economic downturns.

3. NNN REIT (NNN): The Dividend Consistency Champion

Dividend Yield: 5.7%
Key Strengths:
- Low-Risk Portfolio: NNN focuses on single-tenant retail properties (convenience stores, auto service, restaurants) with long-term leases (10-year average). 73% of investments come from existing tenant relationships, ensuring steady acquisitions.
- Unbroken Track Record: NNN has increased dividends for 35 consecutive years—the third-longest streak among REITs. This consistency underscores its financial discipline and tenant management expertise.

Risk Consideration: Economic slowdowns could reduce foot traffic at leased properties, though diversified tenant exposure (163 brands) buffers this risk.

Conclusion: Why These REITs Dominate the 5%+ Yields Landscape

The three REITs highlighted—FCPT, VICI, and NNN—offer a rare combination of high yields, dividend reliability, and inflation protection. Their average yield of 5.3% outperforms the S&P 500’s ~1.5% average dividend yield, while their business models are designed to thrive in both stable and inflationary environments.

Crucially, their low-risk profiles stand out:
- FCPT benefits from long-term leases and a diversified tenant base.
- VICI leverages inflation-indexed rents, a rarity in the REIT sector.
- NNN boasts an unmatched 35-year dividend-growth streak, signaling operational excellence.

While higher-yield stocks like International Seaways (13.96%) or Two Harbors (13.50%) exist, they come with elevated risks—volatility in shipping, interest rates, or regulatory shifts. For passive income seekers prioritizing safety, the top REITs are the clear choice.

Investors should pair these picks with diversification (e.g., including one Dividend Aristocrat like Realty Income Corp at 5.53%) and tax-smart strategies to maximize returns. As always, monitor payout ratios (<80% is ideal) and industry trends to ensure these dividends remain sustainable.

In the quest for 5%+ yields, these three REITs are not just investments—they’re income engines built to last.