Top 3 Dividend Stocks for Stable Passive Income in 2025 and Beyond

Dividend stocks are a popular choice for investors looking to generate passive income. These stocks come in various forms, with some offering higher dividend yields but also higher risk profiles, while others provide lower yields but more growth potential. However, there are also dividend stocks that strike a balance between the two, offering durable income streams that grow at a steady pace. Agree Realty, Sun Communities, and Stag Industrial fall into this latter category, making them attractive options for income-focused investors in 2025 and beyond.

Agree Realty is a retail-focused real estate investment trust (REIT) that owns freestanding properties leased to financially strong tenants. The company’s lease structures require tenants to cover operating expenses, resulting in stable and low-risk cash flow for Agree Realty. With a conservative payout ratio and a strong investment-grade balance sheet, Agree Realty’s 4% yielding monthly dividend is built on a solid foundation. The company has a track record of growing its dividend at a compound annual rate of 5.7% over the past decade and is well-positioned to continue this growth in the future, thanks to its strong financial position and liquidity.

Sun Communities is a residential REIT that focuses on niche property sectors, including manufactured housing communities, RV resorts, marinas, and U.K. holiday parks. Manufactured home communities are known for their durability, as relocating a manufactured home is challenging and expensive. Sun Communities has recorded positive net operating income growth every year for the past 20 years, outpacing the industry average. The company is well-positioned for future growth, with plans to raise rents tied to market rates or inflation and opportunities to lease vacant sites across its portfolio. With a solid balance sheet and a strategy to transition RV sites to annual leases, Sun Communities is poised to continue growing its more than 3% yielding dividend.

Stag Industrial focuses on industrial real estate, such as warehouses and light manufacturing facilities, signing long-term leases with credit-worthy tenants. The company’s leases escalate rents annually at a low-single-digit rate, generating stable cash flow. With a payout ratio of less than 70% and a strong balance sheet, Stag Industrial has over $100 million in excess free cash flow each year to fund new investments. The demand for industrial real estate is strong, allowing Stag Industrial to secure higher lease rates when legacy contracts expire. This, combined with rent growth from legacy leases and income from new investments, positions Stag Industrial to continue growing its dividend, which it has done every year since going public in 2011.

In conclusion, Agree Realty, Sun Communities, and Stag Industrial are highly durable dividend stocks with low-risk business models and solid financial profiles. These REITs own properties with long-term leases that provide steady income, making them ideal choices for investors seeking reliable passive income. With their track records of dividend growth and strong financial positions, these companies are well-positioned to maintain and increase their dividends in 2025 and beyond, making them attractive investments for income-focused investors.