Looking for a Super Safe Passive-Income Stream? Check Out This 3.6%-Yielding Dividend Stock.

Core Viewpoint - Essential Properties Realty Trust (EPRT) is highlighted as a strong option for investors seeking a reliable passive income stream through real estate investment trusts (REITs) [2][12] Company Overview - Essential Properties Realty Trust owns over 2,100 properties leased to 413 tenants across 16 industries in 49 states [3] - The REIT's top tenant, Equipment Share, contributes 4.2% of its annual base rent, while the top 10 tenants account for 17.6% of the total rent [3] Lease Structure - The REIT signs long-term net leases with a weighted average remaining lease term of 14 years, ensuring stable rental income as tenants cover all operating expenses [4] - Nearly 97% of its leases have a low fixed annual escalation rate of 1.7%, leading to steadily rising rental income [4] Financial Profile - Essential Properties maintains a conservative financial profile with a low leverage ratio of 3.8 times and an investment-grade rated balance sheet (BBB/BBB-) [7] - The REIT pays out about two-thirds of its stable cash flow in dividends, which is conservative compared to Realty Income's 74.6% payout ratio [5][6] Dividend Growth - The REIT has consistently increased its dividend every year since going public in 2018, providing investors with approximately 2% raises every six months [9] - Essential Properties has a lower dividend yield of 3.6% compared to Realty Income's 5.5%, but retains $120 million in excess free cash flow annually for further investments [6] Property Types - Service-related properties make up 79% of the REIT's annual base rent, while experience-related properties account for 13.5%, retail properties for 3.3%, and industrial properties for 3.5% [10]