In this article, we will take a look at the 15 Best Stocks to Buy Now for Passive Income.
According to a report by Bankrate, many Americans are feeling uneasy about their finances as sticky inflation and a job market that appears to be losing some momentum have left a lot of people unsettled. When asked about this, 32% of Americans said they believe their personal finances will worsen in 2026, according to Bankrate’s Financial Outlook Survey. That is the highest level of pessimism since 2018, when Bankrate first started asking consumers about their financial expectations.
The number was lower just a year ago. In 2025, about 23% of respondents believed their finances would get worse. Inflation remains a major source of concern. Among those expecting their financial situation to deteriorate next year, 78% pointed to continued high inflation. Another 55% said actions taken by elected representatives are also shaping their outlook.
At the same time, many people are looking for ways to strengthen their income. Hostinger reported that in 2026, more individuals are earning extra money through side hustles alongside their primary jobs. For some, the goal is straightforward: increase monthly income. Others approach it differently, hoping a side project might eventually grow into a full-time business. The survey also found that passive income side hustles are gaining popularity.
Affiliate marketing is one of the areas seeing strong growth. The industry is now valued at $18.5 billion. According to affiliate marketing statistics, more than 80% of businesses incorporate affiliate marketing into their digital strategies. Within this space, education and e-learning stand out as some of the highest-paying segments. Demand for online courses and certification programs continues to rise. Amazon’s affiliate program remains the largest player in the market, holding a 46.21% share.
Dividends represent another path to passive income. Investors receive regular payouts from the companies they own. By relying on stock dividends instead of profits from selling shares, investors can lower the risk of gradually draining their portfolios. And compared with options like owning rental property, collecting dividend payments requires very little ongoing effort.
Given this, we will take a look at some of the best stocks to buy.
Our Methodology:
For this list, we screened for dividend companies with yields above 3.5%, as of March 5. Though some of the stocks have extreme yields, their dividend policies have remained stable over the years. These stocks are also popular among hedge funds. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
15. Harley-Davidson, Inc. (NYSE:HOG)
Dividend Yield as of March 5: 3.93%
On March 4, UBS lowered its price recommendation on Harley-Davidson, Inc. (NYSE:HOG) to $19 from $27. The firm maintained a Neutral rating on the shares.
Earlier, on February 18, Morgan Stanley analyst Stephen Grambling reduced the firm’s price objective on Harley-Davidson to $12 from $18. The analyst reiterated an Underweight rating on the stock. After attending the 2026 Miami boat show last week, the firm said original equipment manufacturers described the consumer environment as choppy. At the same time, they expect innovation to help drive share gains once demand begins to recover. The firm also said it adjusted its estimates for the powersports sector following discussions at the event and after reviewing fourth-quarter earnings.
Harley-Davidson, Inc. (NYSE:HOG) is the parent company of Harley-Davidson Motor Company and Harley-Davidson Financial Services. The company operates through three segments: Harley-Davidson Motor Company (HDMC), LiveWire, and Harley-Davidson Financial Services (HDFS).
14. Essex Property Trust, Inc. (NYSE:ESS)
Dividend Yield as of March 5: 3.99%
On March 4, Scotiabank analyst Nicholas Yulico lowered the firm’s price recommendation on Essex Property Trust, Inc. (NYSE:ESS) to $278 from $284. The analyst reiterated an Outperform rating on the shares. The firm said it is updating its price targets for U.S. multifamily REITs under its coverage. According to the analyst, most markets are still operating at occupancy levels below those seen before COVID, during the 2015–2019 period. Investors may need to wait for the Spring leasing season and clearer signs of stronger market growth before a meaningful positive catalyst appears, the firm noted.
Earlier, on February 19, the company said its Board of Directors approved a 0.8% increase to its annual cash dividend. The increase marks the company’s 32nd consecutive year of annual dividend growth. The board also declared a first-quarter dividend of $2.59 per share. On an annualized basis, the dividend represents a distribution of $10.36 per common share.
Essex Property Trust, Inc. (NYSE:ESS) is a self-administered and self-managed real estate investment trust. The company acquires, develops, redevelops, and manages apartment communities in selected residential areas along the West Coast of the United States.
13. Blackstone Inc. (NYSE:BX)
Dividend Yield as of March 5: 4.10%
On March 5, Barclays analyst Benjamin Budish reinstated coverage of Blackstone Inc. (NYSE:BX) with an Equal Weight rating. The analyst set a $126 price target on the stock after a short period of restriction. The firm said its rating, price target, and estimates remain unchanged.
A day earlier, on March 4, Bloomberg reported that talks between Blackstone and New World Development Co. have slowed. The report said the developer’s controlling family is hesitant to give up influence over the company. Blackstone had proposed investing about $2.5 billion into a special-purpose vehicle that would make it New World’s largest shareholder. The Cheng family, which owns about 45% of the company, was expected to contribute between $1 billion and $1.5 billion as part of the plan.
Discussions have stalled as the family looks at other financing options that could raise capital without giving up control. New World has been under pressure since last year. Heavy borrowing and a sharp downturn in the property markets of Hong Kong and mainland China pushed the company close to default. Since then, it has been looking for support from investors to help manage its debt.
The family of tycoon Henry Cheng effectively controls the company. Blackstone declined to comment on the discussions. New World and the family’s investment arm, Chow Tai Fook Enterprises, did not immediately respond to requests for comment.
Blackstone Inc. (NYSE:BX) is an alternative asset manager. Its asset management business includes global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries, and hedge funds.
12. Federal Realty Investment Trust (NYSE:FRT)
Dividend Yield as of March 5: 4.13%
On March 5, Ladenburg raised its price recommendation on Federal Realty Investment Trust (NYSE:FRT) to $125 from $115. It kept a Buy rating on the shares. The firm said the higher target reflects the re-rating of the shopping center sector in 2026.
During the company’s Q4 2025 earnings call, CEO Donald Wood said the company closed the year on a strong note and entered 2026 with solid momentum. He pointed to 6.4% bottom-line FFO growth in the fourth quarter and 4.3% growth for the full year. Guidance for 2026 suggests growth of about 6% at the midpoint. Wood noted that these figures exclude the one-time benefit from a new market tax credit, which is now reflected in the company’s updated Core FFO metric.
Wood also spoke about leasing activity across the portfolio. The portfolio ended the year 96.6% leased and 94.5% occupied. During the quarter, the company completed 601,000 square feet of comparable leasing deals at 12% rollover spreads. For the full year, Federal Realty signed 2.3 million square feet of comparable deals at 15% rollover. These agreements add about $11 million in additional annual rent now under contract.
On the investment side, Wood said the company acquired Annapolis Town Center and Village Pointe. Together, the properties add nearly one million square feet and were purchased for about $340 million. According to Wood, the deals carry an initial yield in the low 7% range and are expected to generate unlevered internal rates of return close to 9%. He also said the company continued to recycle capital through property sales. During the quarter, Federal Realty completed $169 million in dispositions, followed by another $150 million shortly after year-end. The transactions were completed at combined cap rates in the low 5% range.
Wood also announced plans for a residential development at Willow Grove Shopping Center that will include 261 apartment units. He said combining high-quality residential units with retail properties can create meaningful long-term value and added that the company plans to continue pursuing this strategy while recycling assets.
Federal Realty Investment Trust (NYSE:FRT) is an equity real estate investment trust. The company focuses on owning, operating, and redeveloping retail-based properties, mainly in major coastal markets and selected underserved regions with strong economic and demographic fundamentals.
11. Chord Energy Corporation (NASDAQ:CHRD)
Dividend Yield as of March 5: 4.36%
On March 5, Piper Sandler analyst Mark Lear raised the firm’s price recommendation on Chord Energy Corporation (NASDAQ:CHRD) to $158 from $151. The analyst reiterated an Overweight rating on the shares. The firm said the rotation trade gained momentum this week as the war with Iran put about 20% of global oil, product, and gas supply at risk. While the conflict has overshadowed fourth-quarter results and fiscal 2026 outlooks, Piper Sandler expects little change from U.S. operators following the developments.
During the Q4 2025 earnings call, CEO Daniel Brown said Chord Energy Corporation has returned about $6.7 billion to shareholders. Speaking about fourth-quarter performance, Brown said oil production landed at the high end of the company’s guidance. Capital spending, on the other hand, finished below the low end of the expected range. He credited disciplined cost management for the outcome. The company generated about $175 million in adjusted free cash flow during the quarter, which he said came in well above expectations.
Looking ahead, Brown said the company’s 2026 plan remains in line with the preliminary outlook shared in November. The strategy focuses on maintaining little to no oil production growth, with average output expected to range between 157,000 and 161,000 barrels per day. The plan includes capital spending of about $1.4 billion.
Brown also said that, assuming benchmark prices of $64 per barrel of oil and $3.75 per MMBtu of natural gas, the company expects to generate roughly $700 million in free cash flow in 2026.
Chord Energy Corporation (NASDAQ:CHRD) is an independent exploration and production company engaged in the acquisition, exploration, development, and production of crude oil, natural gas liquids (NGL), and natural gas, primarily in the Williston Basin.
10. Mid-America Apartment Communities, Inc. (NYSE:MAA)
Dividend Yield as of March 5: 4.52%
On March 4, Scotiabank lowered its price recommendation on Mid-America Apartment Communities, Inc. (NYSE:MAA) to $140 from $142. It reiterated a Sector Perform rating on the shares. The firm said it is revising price targets across the U.S. multifamily REITs it covers. According to the analyst, most apartment markets are still operating with occupancy levels below what was typical before COVID, during the 2015–2019 period. Because of that, investors may need to wait for the Spring leasing season and clearer signs of improving market growth before a meaningful catalyst appears.
A day earlier, on March 3, BTIG lowered its price objective on MAA to $150 from $160 and kept a Buy rating on the shares. The analyst said the impact of the supply curve is lasting longer than expected. At the same time, the company’s same-store net operating income is likely to bottom in the first quarter, if it has not already. The note also said effective rent growth is moving in the right direction, even as new lease pricing remains stubbornly weak.
Mid-America Apartment Communities, Inc. (NYSE:MAA) is a multifamily-focused, self-administered, and self-managed real estate investment trust. The company owns, operates, acquires, and selectively develops apartment communities primarily located in the Southeast, Southwest, and Mid-Atlantic regions of the United States.
9. Ford Motor Company (NYSE:F)
Dividend Yield as of March 5: 4.86%
On March 4, BofA reinstated coverage of Ford Motor Company (NYSE:F) with a Buy rating. The firm set a $17 price target on the stock. The analyst said Ford is well-positioned to benefit from changes in the regulatory backdrop under the current administration. Those changes could allow the company to focus more on its higher-margin trucks and SUVs.
The firm also noted that losses from the Model e segment are expected to ease over time. At the same time, Ford’s high-margin commercial business appears to be stabilizing. As those trends play out, the analyst believes the company can begin moving toward its long-term EBIT margin target of 8%. For now, margins are expected to be about 4.8% in 2026.
Also on March 4, the company reported that Ford (F) sold 149,962 vehicles in February. That figure was 5.5% lower than the same month last year, with fully electric vehicles accounting for most of the decline. EV sales dropped sharply, falling 71% to 2,122 vehicles. Hybrid sales also declined, down 21.8% to 12,010 vehicles during the month. Sales of gas-powered vehicles also slipped slightly, down 0.1%.
Looking at the lineup by vehicle type, cars posted the strongest performance. Sales rose 54.5% in February. Truck sales were down 9.4%, while SUV sales declined 2.4%. Within the pickup truck and van lineup, only the Ranger, Maverick, and E-Series recorded higher sales during the month. The F-Series posted a 16.2% decline, driven in part by a 76.3% drop in sales of the F-150 Lightning.
Ford Motor Company (NYSE:F) is an automobile manufacturer. The company develops and sells Ford trucks, sport utility vehicles, commercial vans, and cars, along with Lincoln luxury vehicles and connected services. Its operating segments include Ford Blue, Ford Model e, Ford Pro, and Ford Credit.
8. Lincoln National Corporation (NYSE:LNC)
Dividend Yield as of March 5: 5.12%
On March 3, Morgan Stanley lowered its price recommendation on Lincoln National Corporation (NYSE:LNC) to $46 from $50. The firm reiterated an Overweight rating on the shares. The firm said it is updating price targets for Insurance – Life/Annuity North America companies under its coverage. The analyst noted that while Morgan Stanley is not concerned about life insurers’ exposure to private credit, the broader industry may still face pressure on valuations.
During the Q4 2025 earnings call, Ellen Cooper, Chairman, President and CEO of Lincoln Financial Group, said the company delivered a strong fourth quarter. She pointed out that adjusted operating income increased 31% compared with the same period a year earlier. The result marked the sixth consecutive quarter of year-over-year growth in adjusted operating earnings.
Executive Vice President and CFO Christopher Neczypor said adjusted operating income available to common shareholders totaled $434 million for the quarter, or $2.21 per diluted share. He also reported that net income available to common shareholders reached $745 million, which equals $3.80 per diluted share.
Neczypor also reviewed results across the company’s business segments. Group Protection generated operating income of $109 million during the quarter. The Annuities segment contributed $311 million. Retirement Plan Services reported operating income of $46 million, while the Life Insurance segment produced operating earnings of $77 million.
Lincoln National Corporation (NYSE:LNC) is a holding company that operates several insurance and retirement businesses through its subsidiaries. Its segments include Annuities, Life Insurance, Group Protection, and Retirement Plan Services.
7. Extra Space Storage Inc. (NYSE:EXR)
Dividend Yield as of March 5: 5.18%
On March 5, Barclays raised its price recommendation on Extra Space Storage Inc. (NYSE:EXR) to $170 from $164. It reiterated an Overweight rating on the shares. The firm said it updated its models for self-storage real estate investment trusts following the fourth-quarter reports.
During the Q4 2025 earnings call, CEO Joseph Margolis said Extra Space delivered modest growth, even as operating conditions remained challenging, though he noted they are gradually improving. He said the company generated 2.5% core FFO growth in the fourth quarter and 1.1% growth for the full year. Margolis pointed to improving operating trends across the portfolio. Sixteen of the company’s top 20 markets reported year-over-year increases in move-in rates.
He also noted that revenue trends improved as the year progressed. Same-store revenue returned to positive territory in the fourth quarter, rising 0.4%. Margolis also spoke about the company’s capital allocation. He said Extra Space repurchased about $141 million of its common shares during the period. The company also acquired 27 operating storage properties for about $305 million and originated $80 million in bridge loans.
He added that the company’s diversified external growth platform continues to open opportunities across several channels. According to Margolis, this approach gives the company an edge when competing for external growth opportunities in the industry.
Extra Space Storage Inc. (NYSE:EXR) is a self-administered and self-managed real estate investment trust. The company owns, operates, manages, provides lending to, acquires, develops, and redevelops self-storage properties. Its facilities offer month-to-month rental of storage space for personal or business use.
6. VICI Properties Inc. (NYSE:VICI)
Dividend Yield as of March 5: 5.94%
On March 2, Baird lowered its price recommendation on VICI Properties Inc. (NYSE:VICI) to $34 from $36. It kept an Outperform rating on the shares. The firm said it updated its model following the company’s fourth-quarter results, including raising some of its estimates.
During the Q4 2025 earnings call, CEO Edward Pitoniak said that VICI continues to see strong growth in property-level performance. He pointed out that EBITDAR generated by the portfolio has increased meaningfully over time. Before the pandemic, the figure stood at about $487 million. By 2024, it had risen to roughly $777 million.
President John Payne discussed several partnerships and financing deals completed in 2025. He said the company formed a long-term relationship with Cain International and Eldridge Industries. He also noted that the company arranged a $510 million delayed-draw term loan with Red Rock Resorts, welcomed Clairvest Group as its 14th tenant, and completed a $1.16 billion sale-leaseback transaction with Golden Entertainment.
Payne said these transactions together represent about $2.1 billion in committed capital during 2025. The deals carry a weighted average initial yield of about 8.9%. He also said the company expanded into the Las Vegas locals gaming market, which he described as demographically attractive.
VICI Properties Inc. (NYSE:VICI) is a real estate investment trust. The company owns and acquires gaming, hospitality, wellness, entertainment, and leisure destinations, which operate under long-term triple net leases.
5. United Parcel Service, Inc. (NYSE:UPS)
Dividend Yield as of March 5: 6.30%
On March 3, Jefferies raised the firm’s price recommendation on United Parcel Service, Inc. (NYSE:UPS) to $135 from $130. It reiterated a Buy rating on the shares. The firm said that as investors pay closer attention to business models that could face disruption from AI, transportation networks built around physical infrastructure stand out. The analyst described these as “core HALO exposures,” or Heavy Assets with Low Obsolescence.
In the firm’s view, value in these businesses is derived “not just from software or labor inputs, but from long-lived infrastructure that is capital intensive, regulated, and effectively impossible to rebuild from scratch.” Against this backdrop, the firm said it is raising price targets across its physical asset transportation stocks.
United Parcel Service, Inc. (NYSE:UPS) provides integrated logistics solutions for customers in more than 200 countries and territories. Its U.S. Domestic Package segment offers a range of United States domestic air and ground package transportation services.
4. The Western Union Company (NYSE:WU)
Dividend Yield as of March 5: 9.69%
On March 4, Crossmint, a platform that provides enterprise-grade stablecoin infrastructure, announced a partnership with The Western Union Company (NYSE:WU). The companies will work together to support the rollout of USDPT, Western Union’s new U.S. dollar-denominated stablecoin. The token will be issued on Solana and linked to the company’s newly announced Digital Asset Network.
Western Union said its Digital Asset Network is designed to connect stablecoins with real-world cash access. The system allows users to convert digital dollars into local currency through more than 360,000 collection points worldwide.
As part of the partnership, Crossmint plans to integrate with Western Union’s Digital Asset Network. It also intends to support access to USDPT through its existing wallet and payment APIs. Over time, the companies expect the integration to help fintech applications move funds instantly on Solana, store value in digital dollars, and connect to Western Union’s payout network, where available.
The Western Union Company (NYSE:WU) provides cross-border and cross-currency money movement, payments, and digital financial services. Its services are used by consumers, businesses, financial institutions, and governments. The company operates through two segments: Consumer Money Transfer and Consumer Services.
3. B&G Foods, Inc. (NYSE:BGS)
Dividend Yield as of March 5: 13.62%
On March 5, Barclays analyst Andrew Lazar raised the firm’s price recommendation on B&G Foods, Inc. (NYSE:BGS) to $5 from $4 and kept an Equal Weight rating on the shares. The firm said it believes the company may move closer to its mid-year leverage target with the divestiture of its Green Giant frozen business.
B&G Foods Inc. reported its Q4 2025 earnings on March 3. During the earnings call, President, CEO and Director Kenneth Keller said the company reached an important milestone in reshaping its portfolio. He noted that the firm agreed to sell the Green Giant U.S. frozen business to Seneca Foods Corporation. Keller said the divestiture represents the largest step so far in the company’s portfolio transformation. He indicated that the move should help the company sharpen its focus, simplify operations, create stronger synergies, and support higher margins across its core shelf-stable product lines.
Keller also explained that the Green Giant US frozen segment was not an ideal strategic fit for the company. He said the business involved seasonal production cycles, geographic complexity, and significant working capital requirements, which made it less aligned with B&G Foods’ broader strategy.
Looking at quarterly performance, Keller pointed to a modest improvement in base business sales trends. Base business net sales declined about 2.4% in the fourth quarter, compared with a 2.7% decline in the third quarter. Adjusted EBITDA for the quarter totaled $84.7 million. That figure came in slightly below the prior year, reflecting the impact of divestitures and additional tariff-related costs.
B&G Foods, Inc. (NYSE:BGS) manufactures, sells, and distributes branded shelf-stable and frozen food products. The company serves customers across the United States, Canada, and Puerto Rico. The company operates in four segments: Specialty, Meals, Frozen and Vegetables, and Spices and Flavor Solutions.
2. Arbor Realty Trust, Inc. (NYSE:ABR)
Dividend Yield as of March 5: 13.97%
On March 4, Keefe Bruyette analyst Jade Rahmani raised the firm’s price recommendation on Arbor Realty Trust, Inc. (NYSE:ABR) to $8 from $7.50. The firm reiterated an Underperform rating on the shares.
During the Q4 2025 earnings call, Chairman, President and CEO Ivan Kaufman said Arbor Realty Trust is focused on resolving nonperforming and underperforming loans. He described these loans as a major factor that has been weighing on the company’s earnings. Kaufman said management has a clear plan to work through most of these troubled loans over the coming quarters. If that effort succeeds, he suggested it could restore as much as $100 million to the company’s annual income run rate, or about $0.48 per share.
He noted that the company ended the year with about $570 million in delinquent loans and around $500 million in real estate owned assets. Together, those figures bring total nonperforming assets to roughly $1.1 billion. Kaufman said that the amount declined by more than $130 million compared with the previous quarter. He added that the company expects to resolve about $100 million to $150 million in delinquencies by the end of March. Another $100 million to $150 million could potentially be addressed within the following 90 days.
Kaufman also spoke about the company’s share repurchase activity. He said Arbor Realty Trust bought back about $20 million of its stock in recent months under its repurchase program, at an average price of $7.40 per share. That price represents about 64% of book value.
Arbor Realty Trust, Inc. (NYSE:ABR) is a real estate investment trust and direct lender that provides loan origination and servicing for multifamily, single-family rental portfolios, and other commercial real estate assets. The company operates through two segments: Structured Business and Agency Business.
1. MFA Financial, Inc. (NYSE:MFA)
Dividend Yield as of March 5: 14.16%
On March 5, RBC Capital raised its price recommendation on MFA Financial, Inc. (NYSE:MFA) to $11 from $10. It reiterated a Sector Perform rating on the shares after the company reported its fourth-quarter results. The firm said it is gaining clearer visibility into MFA’s potential for ROE expansion. At the same time, the analyst expects some near-term noise in the company’s distributable EPS due to credit loss realizations.
During the Q4 2025 earnings call, CEO Craig Knutson said the environment for fixed income investors improved meaningfully in 2025 after several difficult years. He suggested the shift felt like emerging from a prolonged downturn. Knutson pointed to a positively sloped yield curve and lower market volatility as signs of a more supportive macro backdrop. He added that the company is entering 2026 with favorable momentum and sees these conditions as helpful tailwinds.
Knutson also reviewed the company’s strategic progress. He said MFA deployed more than $100 million of excess cash into targeted investments during the quarter. The company also completed $1.9 billion in purchases of loans and securities. Those acquisitions included about $1.2 billion in agency securities purchased early in the quarter, $443 million in non-QM loans, and $226 million in new business-purpose loans originated through Lima One Capital.
He also noted that the company continued working through troubled assets. According to Knutson, more than $150 million of delinquent loans were resolved during the quarter. The resolutions freed up capital that could be redeployed into investments expected to generate returns in the mid-teens on equity.
MFA Financial, Inc. (NYSE:MFA) is a specialty finance company that invests in residential mortgage loans, residential mortgage-backed securities, and other real estate assets. Its targeted investments primarily include residential whole loans and residential mortgage securities.
While we acknowledge the potential of MFA to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MFA and that has 100x upside potential, check out our report about this cheapest AI stock.
READ NEXT: 15 Best High Dividend Stocks to Invest in Under $100 and 40 Most Popular Stocks Among Hedge Funds Heading into 2026.
Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
