14 High Yield Dividend Stocks with Sustainable Payouts

3. NNN REIT, Inc. (NYSE:NNN)

Dividend Yield as of January 29: 5.73%

On January 20, Deutsche Bank upgraded NNN REIT, Inc. (NYSE:NNN) to Buy from Hold and set a $47 price objective as part of its 2026 outlook. The move came against a tough backdrop for the broader REIT sector. The group has lagged the S&P 500 in each of the past four years and in nine of the last 11 years. Deutsche expects that pattern to continue into 2026, the analyst said in a research note.

The firm is forecasting a weighted average return of 10.3% across its REIT coverage. That compares with Deutsche’s equity strategy team calling for the S&P 500 to reach 8,000, implying about 16.9% upside from 2025 levels. From a macro standpoint, Deutsche sees limited support for REITs. Expectations call for just one Federal Reserve rate cut in 2026, alongside slower GDP growth and higher unemployment. In that environment, the firm believes REIT earnings growth is unlikely to keep pace with the broader market, making the sector less appealing for growth-focused investors.

NNN REIT operates in a more defensive corner of the space. The trust invests primarily in retail and service-oriented properties, with a focus on automotive service locations, which account for 18.4% of annual base rent. Convenience stores make up 16.2%, while restaurants represent another meaningful portion, split between limited-service and full-service locations.

These assets tend to generate steady, predictable income. Tenants are responsible for operating costs, property taxes, and routine capital spending. Lease terms typically run 10 to 20 years and include modest, low single-digit annual rent increases.

Although retail-focused, NNN REIT, Inc. (NYSE:NNN) emphasizes diversification to limit risk. The portfolio includes nearly 3,700 properties across all 50 states, leased to more than 400 national and regional tenants spanning over 35 different lines of trade.