2 Top Dividend Stocks Yielding 5% or More to Buy Right Now for Passive Income
Key Takeaways
These two real estate investment trusts will let you sleep well at night.
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Quick insights and key information
4 min read
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real estate
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July 29, 2025
03:17 AM
The Motley Fool
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What's particularly noteworthy is Over time, dividends have become a smaller and smaller part of the stock market's total return, with the S&P 500 boasting an average yield of just 1
Additionally, 22% today, compared to 7 (fascinating analysis)
Meanwhile, 44% in 1950
Moreover, In contrast, That said, some companies still offer fat, consistently growing payouts, just the good old days
Moreover, Let's explore some reasons why Realty Income (O -1. 76%) and Vici perties (VICI -2, in today's financial world
Additionally, 58%) could make fantastic long-term picks, in light of current trends
Nevertheless, Meanwhile, Realty Income Corporation Real estate investment trusts (REITs) are a special type of investment that allows retail investors to benefit from the income generated from commercial real estate
On the other hand, But they aren't all the same
However, Realty Income stands out from the alternatives because of its track record of success, monthly payouts, and unique, risk-minimizing model (an important development), considering recent developments
Since going public in 1994, Realty Income has increased its dividend for 30 consecutive years (something worth watching)
Meanwhile, The company funds the payout with the cash generated from its portfolio of 15,600 perties spread across North America and Europe
In contrast, Realty Income's model is relatively safe because of its use of triple-net leases, which mean the tenant is responsible for building-level operating costs tax and insurance
It also tends to focus on recession-of tenants grocery stores, dollar stores, and auto repair shops, although many flashier clients casinos and IT data centers have been sprinkled into the mix to help power growth
Furthermore, While macroeconomic threats high interest rates have caused Realty Income's s to underperform in recent years, they give investors an opportunity to buy the stock for cheap and lock in a relatively high yield of 5. 55% at the time of writing, which is far above the market average
Vici perties While Realty Income features a long track record and diversification into many different industries, Vici perties offers more concentrated exposure (noteworthy indeed) (something worth watching)
The company was formed in 2017 from the spinoff of real estate assets formerly owned by Caesars Entertainment Company during its bankruptcy restructuring
The analysis reveals has since evolved to become a leading entertainment-focused REIT, with 93 perties across North America
While entertainment is a consumer discretionary expenditure that may drop during economic downturns, Vici manages this risk with triple-net leases and high-quality tenants Caesars and MGM Res, which have stable es and are deeply tied to their locations
Moreover, The company has often relied on leaseback sales, which are when it buys an asset (such as a Casino) from a client who needs liquidity or to free up capital for elsewhere, only to rent it back to them, giving Vici access to stable, growing revenue
Image source: Getty Images
Moreover, Vici also offers excellent growth potential as it expands into different asset types, such as golf courses, and potentially redevelops its 33 acres of undeveloped land located near the Las Vegas Strip
Furthermore, With a dividend yield of 5 (which is quite significant)
In contrast, 15%, Vici is an excellent pick for investors who prioritize passive income (fascinating analysis), considering recent developments
But don't overlook its stock price growth potential
However, S have risen around 60% over the last five years, with a 16% rally so far in 2025
The company bably won't stay this cheap for long, in light of current trends
Which dividend stock is right for you
Realty Income and Vici perties are both great picks for investors who prioritize sustainable passive income for the long term
If you could only pick one, the best choice will depend on your investment goals, amid market uncertainty
Realty Income is better for investors who are willing to sacrifice a little growth potential for stability
But while Vici perties doesn't have as long a track record, it offers more room for capital appreciation, in light of current trends.
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