Dividend stocks can be a great way for larger investors to earn passive income from their portfolios.
Alpine Income and Dollar General boast decent yields and recession-resistant business models.
As your investment portfolio gets larger, it makes sense to prioritize stability and income over short-term gains. Dividends also feel much more impactful when you have more money to work with. To put this in perspective, a 5% yield on a $1,000 portfolio gives you an extra $50 each year -- that jumps to $50,000 per year on a $1 million portfolio.
It's the same percentage yield but with a much more potentially life-changing impact. And over the long term, this money can compound into a comfortable retirement or even lasting generational wealth.
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Let's explore some reasons why Alpine Income (NYSE: PINE) and Dollar General (NYSE: DG) look like great picks for investors who want to build income-focused portfolios that can stand the test of time.
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Real estate investment trusts (REITs) are a special type of stock designed to give investors access to the wealth-generating power of real estate without the real-world complexities like tenants, maintenance, and insurance. REITs are ideal for long-term investors because of their above-average yields alongside often safe and diversified business models.
The industry is dominated by giants like Realty Income and Welltower (which boast market caps of $61 billion and $148 billion, respectively). But Alpine Income stands out because of its relatively small size. With a market cap of just $324 million, the company gives investors a chance to get in on the ground floor of its expansion story.
Unlike larger REITs, it will be easier for Apine's management to find quality real estate deals that can move the needle. And in late 2025, the company closed a series of deals, including a $20.7 million strip mall anchored by Walmart and TJ Maxx. These large mainstream brands promise reliable cash flow. And Alpine Income further boosts its safety through the use of triple net leases, where the tenant is responsible for many property-level operating costs like taxes, maintenance, and insurance.
The market is finally taking notice of Alpine Income, sending shares up 18% year to date. But with a dividend yield of around 6%, shares still look like an excellent income opportunity at the time of writing.
The war in Iran has injected a high level of uncertainty into the U.S. economy, with rising fuel costs threatening to boost inflation and making it harder for consumers to afford nonessential goods. The situation is bad enough that credit ratings agency Moody's puts the probability of a recession at 49% in 2026. That said, Dollar General's business model could help it thrive in this uncertain macroeconomic environment.
Unlike a typical grocery store, the company offers a streamlined, no-frills shopping experience -- often prioritizing locations in rural and underserved areas where land and labor are cheaper. It then passes these savings on to consumers in the form of lower prices. While lower income brackets still represent the company's bread and butter, it is increasingly appealing to wealthier consumers.
This trend has allowed Dollar General to raise prices slightly to maintain its margins. And over the long term, investors can expect the company to continue broadening its niche within the U.S. retail landscape. Fourth quarter net sales jumped 5.9% year over year to $10.9 billion, driven by healthy same-store growth. Meanwhile, quarterly profits surged 106.1% to $606.3 million, generating plenty of cash to return to shareholders.
With a dividend yield of just 1.9%, Dollar General's payout falls short of traditional income-oriented stocks like Alpine Income. That said, Dollar General has maintained its dividend for over a decade. And there is plenty of room for growth as it continues to scale up. The stock is ideal for investors who want a balance of income and capital appreciation.
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Will Ebiefung has positions in Realty Income and is short shares of Dollar General. The Motley Fool has positions in and recommends Moody's, Realty Income, and Walmart. The Motley Fool has a disclosure policy.