In the pursuit of achieving financial freedom and building passive income streams, investors often turn to high-quality, high-yield dividend stocks. Two such stocks that have garnered attention for their attractive dividends and growth prospects are Mid-America Apartment Communities (NYSE: MAA) and Rexford Industrial Realty (NYSE: REXR).

Mid-America Apartment Communities (MAA) is a real estate investment trust (REIT) that specializes in multifamily properties. With an impressive portfolio of nearly 104,000 apartment units across 16 states, primarily in the thriving Sun Belt region, MAA benefits from the rising demand for housing in markets with robust job and population growth. This steady demand fuels MAA's rental income, supporting its dividend, which currently yields around 4%, significantly higher than the S&P 500's 1.3% dividend yield.

MAA's commitment to providing consistent dividends is reflected in its track record. Recently declaring its 122nd consecutive quarterly dividend, MAA has increased its dividend for 14 consecutive years, including a 5% hike in late 2023. The company's conservative dividend payout ratio, around 75% of its adjusted funds from operations (FFO) in 2024, allows it to retain cash for portfolio expansion while maintaining a solid cushion. With a healthy balance sheet boasting a low 3.7 times leverage ratio, MAA has the flexibility to fund new investments, further supporting its dividend growth.

The REIT has been actively expanding its apartment portfolio, with recent acquisitions and development projects in the pipeline. Its latest venture includes the purchase of a newly built 306-unit multifamily community for $81 million, currently in the lease-up phase. Moreover, MAA plans to invest over $866 million across seven development projects, with the aim of adding more than 2,600 new apartment units by 2026. This focus on expanding its cash flow through new additions, alongside rising rental income from existing properties, positions MAA for continued dividend growth.

Rexford Industrial Realty, another REIT, operates in the logistics properties sector and primarily focuses on Southern California, one of the world's largest industrial real estate markets. With 422 properties spanning approximately 49.7 million rentable square feet, Rexford benefits from consistently high occupancy levels and strong rent growth attributed to the region's high demand and limited supply.

Rexford's financial performance speaks to its success in meeting investor expectations. In the second quarter of this year, core funds from operations (FFO) surged by 11.1% to $0.60 per share, driven by an impressive 67.7% increase in rents on new and renewal leases. With a current dividend yield of over 3%, supported by robust earnings growth and prudent financial management, Rexford demonstrates its commitment to delivering high-yielding dividends.

The REIT utilizes retained cash and its low-leverage balance sheet to drive portfolio expansion. Earlier this year, Rexford invested $1 billion to acquire a portfolio of 48 properties from leading private equity fund manager Blackstone. In the second quarter alone, the REIT completed $1.3 billion of acquisitions, reinforcing its growth trajectory. With embedded rent growth drivers, recent acquisitions, and redevelopment projects, Rexford expects to boost its net operating income by 35% over the next three years, underpinning its ability to continue increasing its dividend at a strong rate.

Both MAA and Rexford Industrial Realty align with the goals of investors seeking steady, high-yielding dividend income and the potential for growth. With their strong financial profiles, visible growth prospects, and solid track records of dividend increases, these REITs offer appealing opportunities for passive income. Investors who prioritize ever-increasing income should consider adding these stocks to their portfolios.

Disclaimer: The author, Matt DiLallo, holds positions in Blackstone, Mid-America Apartment Communities, and Rexford Industrial Realty. The Motley Fool holds positions in and recommends Blackstone, Mid-America Apartment Communities, and Rexford Industrial Realty.