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High Dividend Opportunities: The Income Method

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2 Huge Dividends to Buy and Never Let Go

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We all have something we’d never part with. It could be a vintage watch, a family heirloom, a guitar that’s seen better days, but holds priceless memories. These possessions might not sparkle like they once did, yet their sentimental and enduring value makes them irreplaceable assets. They offer comfort, familiarity, and a sense of permanence in a world that is constantly changing.


The world of investing is constantly surrounded by rapidly changing market news, and emotional investors seeking the next big thing. While markets swing between optimism and panic, a few select investments stand out for their reliability. This is not because they’re exciting, but because they quietly and predictably deliver. These are the kinds of assets you buy, hold, and never feel tempted to trade away. Except unlike your prized possessions, these treasures pay you regularly to own them. Let’s dive into our top picks that fit our buy and hold forever criteria.


Pick #1: RLJ Preferred – Yield 7.6%


RJ Lodging Trust (RLJ) is a hotel REIT that operates 94 hotels with ~21,000 rooms located in 23 states, under well-recognized global brands, like Courtyard/Residence Inn by Marriott, AC Hotels, Moxy Hotels, Hilton Garden Inn, Embassy Suites, Hyatt Place, and Wyndham.


The REIT is pursuing transformational renovations at four high-occupancy properties in South Florida, Hawaii, and New York, and expects these assets to start ramping up in Q4. Management reported that the seven recently completed conversions generated 10% YoY, and this is a promising indicating for what's ahead for the REIT.

 

During Q2, RLJ reported Adjusted FFO per share of $0.48, adequately covering its $0.15 quarterly dividend at a comfortable 31% payout ratio. The REIT has a comfortable debt maturity schedule and a strong liquidity position of ~$1 billion.


  • $1.95 Series A, Cumulative Convertible Perpetual Preferred Shares (RLJ.PR.A)


RLJ has one public preferred stock – RLJ-A. During 1H 2025, RLJ spent $12.5 million on preferred stock dividends, and this security enjoys strong coverage from the REIT’s $110.9 million FFO and $119.5 million AFFO.


RLJ-A can be converted into common stock if RLJ trades at or above $89.09 for 20 out of 30 trading days. As such, for the preferred stock to become convertible, the common stock has to surge by over 900%. This is not impossible, but highly improbable, making RLJ-A a source of steady 7.6% yields for the foreseeable future.


Pick #2: NNN – Yield 5.7%


NNN REIT Inc. (NNN) is a Net Lease REIT that focuses on single-tenant properties. NNN ended its second quarter with a portfolio of 3,663 properties rented out to 400 tenants from 37 different lines of trade. 


NNN’s Q2 Annualized Base Rent (ABR) grew by 6.7% YoY, reflecting strong capability of raising rents in line with inflationary pressures. The REIT ended Q2 with a high occupancy of 98%, indicating excellent demand for its properties. 


NNN’s reported Core FFO/share of $1.70, and AFFO/share of $1.72/share for 1H 2025 places the REIT’s 6-month dividend payout at a modest 68% ratio. The REIT raised its AFFO guidance and its acquisition and disposition volume for the full year.


NNN’s 3.4% YoY increase in Q3 dividends puts the REIT on track for 36 years of annual payment raises. The REIT’s current payout calculates to a 5.7% annualized.


Conclusion


At High Dividend Opportunities, we believe the best investments are the ones that let you live life on your terms. A steady stream of dividends means you can tune out of daily market noise — no need to stress about earnings whispers, interest rate jitters, or support and resistance levels.


Income investing ensures your money works while you enjoy what truly matters: a peaceful morning on the golf course, time with family, or that long-overdue vacation. Each dividend check is a quiet reminder that financial independence isn’t about chasing the next big thing — it’s about owning assets that steadily pay you to stay invested.


That’s the beauty of income investing — your most powerful tool for a truly stress-free retirement.



This opportunity allows you to view weeks of our exclusive content, access our Model Portfolio, and begin to see the deep value HDO offers compared to using a Financial Advisor or Investment Advisor.


Tired of cookie-cutter recommendations and the same old ideas from uninterested and uninvested individuals? You can join a community that is as invested in your success as you are, and a team of experts who own every holding in our Model Portfolio. Your success is our success!

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