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

Investment Strategy - The primary financial goal is to generate sufficient passive income to cover basic living expenses, with a focus on investments that alleviate concerns about the impact of AI on income [1] - Investing in high-quality dividend stocks is the foundation of the investment strategy, with NNN REIT recently added to the portfolio to help achieve financial freedom through passive income [2] Company Overview - NNN REIT is a straightforward investment focused on single-tenant properties secured by long-term triple-net leases, primarily in retail and service sectors [4] - The properties owned by NNN REIT produce a reliable income stream with low volatility, as tenants cover operating expenses, taxes, and routine capital expenditures [5] Portfolio Diversification - NNN REIT maintains a well-diversified portfolio, owning nearly 3,700 properties across 50 states, leased to over 400 national and regional tenants in more than 35 lines of trade [6] - Major tenants include 7-Eleven (4.3% of rent), Mister Car Wash (3.9%), and Dave & Buster's (3.7%), with properties located in main street areas to ensure a strong market for replacement tenants [6] Dividend Performance - NNN REIT currently offers a dividend yield of over 5.5%, surpassing the REIT sector average of around 4.4% and the S&P 500's yield of approximately 1.1% [7] - The dividend payout ratio is around 70% of adjusted funds from operations (FFO), which is lower than many other net lease REITs, indicating a solid foundation for the high-yielding payout [8]