In this article, we will take a look at some of the best dividend stocks in the REIT sector.
Real estate has been the weakest-performing sector in the equity markets over the past five years, both in the US and globally. While high interest rates have played a major role, long-term shifts such as remote work, e-commerce, and home-sharing have added pressure. As a result, investor sentiment has turned negative, with mutual funds and ETFs in Morningstar’s real estate categories seeing significant outflows.
However, value investors often view this kind of pessimism as a potential opportunity. The Morningstar Global Markets ex-US REIT Index has rebounded in 2025, helped by a weaker US dollar. In contrast, the Morningstar US REIT Index has shown mixed performance, holding up during the market’s March and April downturns but trailing the broader rebound in May.
Though real estate stocks gained only 0.9% in May, compared to the broader market’s 6%, some parts of the sector are showing signs of life. According to Wolfe Research, office REITs may be turning a corner. The office REIT sub-sector rose over 5% in May, its first positive month in 2025, suggesting a possible rebound after months of underperformance. Real estate remains sensitive to long-term Treasury yields, which influence borrowing costs, but select dividend-paying REITs may be worth watching. Given this, we will take a look at some of the best dividend stocks in the REIT sector.
Our Methodology
For this list, we scanned Insider Monkey’s database of 1,000 hedge funds as of Q1 2025 and picked REIT companies that pay regular dividends to shareholders. Next, we narrowed down 11 companies that are popular among elite funds at the end of Q1 and ranked them in ascending order of the number of funds that have stakes in them.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11. Universal Health Realty Income Trust (NYSE:UHT)
Number of Hedge Fund Holders: 9
Universal Health Realty Income Trust (NYSE:UHT) is one of the best dividend stocks in the REIT sector. The company remains relatively under the radar. While there isn’t widespread analysis of its dividend reliability, the company’s strong cash flow plays a key role in supporting its payouts. Over the past twelve months, UHT generated $46.8 million in operating cash flow and $40.04 million in free cash flow.
In the first quarter of 2025 alone, it distributed about $10.2 million in dividends to shareholders.
On June 11, Universal Health Realty Income Trust (NYSE:UHT) announced a quarterly dividend of $0.74 per share, consistent with its previous payment. The trust has increased its dividend for 41 straight years. Although the five-year dividend growth rate is modest at 1.4%, the focus remains on its ability to sustain these payments. As of June 23, the stock offered a dividend yield of 7.22%.
Universal Health Realty Income Trust (NYSE:UHT) operates as a healthcare-focused REIT, owning properties such as acute care and rehabilitation hospitals, medical office buildings, behavioral health centers, sub-acute care facilities, and childcare centers.
10. Arbor Realty Trust, Inc. (NYSE:ABR)
Number of Hedge Fund Holders: 12
Arbor Realty Trust, Inc. (NYSE:ABR) is one of the most prominent stocks in the real estate sector. The mortgage REIT, which focuses on multifamily properties, had been consistently raising its dividend until mid-2023.
However, Arbor Realty Trust, Inc. (NYSE:ABR) paused those increases as rising interest rates began to weigh on the multifamily sector and its earnings. When the REIT last raised its dividend in July 2023, its payout ratio was 75% of its distributable earnings. That figure has since jumped to nearly 150%.
Earnings continued to weaken into 2025, with the company reporting $0.28 per share in distributable earnings for the first quarter, or $0.31 per share when excluding a $7.1 million loss from the sale of two properties. In response, it reduced its dividend to $0.30 per share. If earnings decline further, another cut may be on the table.
That said, the outlook isn’t entirely bleak. While Arbor Realty Trust, Inc. (NYSE:ABR) primarily focuses on low-risk multifamily properties, it also generates income from loan origination and servicing fees, single-family rental properties, and commercial real estate. This diversified revenue base can help Arbor maintain steady income across various phases of the economic cycle.
ABR supports a dividend yield of 11.49%, as of June 23.
9. Innovative Industrial Properties, Inc. (NYSE:IIPR)
Number of Hedge Fund Holders: 21
Innovative Industrial Properties, Inc. (NYSE:IIPR) is among the best dividend stocks in the REIT sector. The company focuses on cannabis-related facilities, mainly grow houses, and operates under a net lease model where tenants handle most property expenses. As the cannabis industry shifts from rapid growth to consolidation, some tenants are struggling to pay rent. Despite these challenges, IIPR has managed to navigate the headwinds fairly well.
One of Innovative Industrial Properties, Inc. (NYSE:IIPR)’s main strengths is its solid balance sheet, with a low debt ratio of 0.15, well below industry averages. This low leverage gives the company flexibility to expand its portfolio and support its dividend.
From 2017 to 2024, its average AFFO payout ratio was around 85%, which is on the higher side for a net lease REIT. A recent lease adjustment with a major tenant is expected to reduce FFO by $0.16 per share, potentially pushing the payout ratio slightly above 90% in 2025. This makes Innovative Industrial Properties, Inc. (NYSE:IIPR)’s strong financial position even more important and helps justify its dividend yield of over 13%.
Innovative Industrial Properties, Inc. (NYSE:IIPR) currently offers a quarterly dividend of $1.90 per share and has been growing its payouts for eight consecutive years.
8. NNN REIT, Inc. (NYSE:NNN)
Number of Hedge Fund Holders: 26
NNN REIT, Inc. (NYSE:NNN) is one of the best dividend stocks in the REIT sector. The company has built a remarkable track record when it comes to dividend growth, having raised its payout for 35 straight years as of 2024. That achievement places it among a select few; only two other REITs and fewer than 80 publicly traded US companies have managed such a streak.
Looking ahead, NNN REIT, Inc. (NYSE:NNN) appears well-positioned to keep that momentum going. As of mid-2025, its dividend payout ratio sits below 70% of its funds from operations (FFO), and it maintains a conservative balance sheet with relatively low debt. This strong financial foundation gives the company room to keep acquiring income-generating retail properties.
In addition, its cash position is strong. NNN REIT, Inc. (NYSE:NNN)’s operating cash flow grew from $569 million in 2021 to $635.5 million in 2024. With its portfolio and cash flow continuing to expand, the company seems poised to keep boosting its already generous dividend.
NNN REIT, Inc. (NYSE:NNN) currently offers a quarterly dividend of $0.58 per share and has a dividend yield of 5.34%, as of June 23.
7. CubeSmart (NYSE:CUBE)
Number of Hedge Fund Holders: 29
CubeSmart (NYSE:CUBE) is among the best dividend stocks in the REIT sector. The company has delivered solid returns over the past decade, with a total return of roughly 84%. Its performance has been supported by rising demand in the self-storage sector. Data from Yardi Matrix shows that the industry added an average of 439 new facilities annually between 2010 and 2019. That figure jumped to 735 per year from 2020 to 2023, reflecting growing consumer and business need for storage space.
CubeSmart (NYSE:CUBE) has also proven itself as a dependable dividend stock, having increased its payout for 16 consecutive years. Over the past five years, it has raised its dividend at an average annual rate of 9.6%, backed by strong financials. Over the last twelve months, the company generated $627.2 million in operating cash flow and $486.5 million in free cash flow.
CubeSmart (NYSE:CUBE) operates as a self-administered, self-managed REIT focused on providing affordable, accessible, and— at many locations— climate-controlled storage solutions for both residential and commercial clients. As noted in the 2025 Self-Storage Almanac, it ranks among the top three self-storage owners and operators in the US.
CubeSmart (NYSE:CUBE) currently offers a quarterly dividend of $0.52 per share and has a dividend yield of 4.85%, as of June 23.
6. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 32
Realty Income Corporation (NYSE:O) is one of the best dividend stocks in the REIT sector. The company is widely recognized as a monthly dividend stock, distributing dividends each month. In June 2025, the company declared its 660th consecutive monthly dividend and marked its 131st dividend increase since it began trading on the NYSE three decades ago.
Realty Income Corporation (NYSE:O) earns highly predictable rental income from a broad and well-diversified portfolio that spans retail, industrial, gaming, and data center properties. More than 90% of its rental revenue comes from tenants in sectors that are either less affected by economic downturns or largely shielded from e-commerce disruption. These properties are typically leased on a net basis to financially strong tenants under long-term agreements that often include built-in annual rent increases, supporting consistent growth in rental income.
As of mid-2025, Realty Income Corporation (NYSE:O) maintains a conservative dividend payout ratio of under 75% and boasts one of the most robust balance sheets among REITs, with a leverage ratio of 5.4 times. This financial strength allows the company to continue acquiring cash-generating properties.
Realty Income Corporation (NYSE:O) expects that a mix of rising rental revenue and ongoing portfolio growth will increase its funds from operations (FFO) per share by 4% to 5% annually. This growth outlook supports the REIT’s ability to keep raising its already attractive monthly dividend. The company currently offers a monthly dividend of $0.269 per share and has a dividend yield of 5.57%, as of June 23.
5. Agree Realty Corporation (NYSE:ADC)
Number of Hedge Fund Holders: 33
Agree Realty Corporation (NYSE:ADC) is one of the best dividend stocks in the REIT sector. The company may be a smaller REIT compared to some of its peers, but it still manages a sizable portfolio of around 2,400 properties. That scale allows even modest acquisitions to make a noticeable contribution to the company’s overall growth, which is reflected in its steadily rising dividend.
In January 2021, Agree Realty Corporation (NYSE:ADC) transitioned from paying dividends quarterly to distributing them monthly. Since then, the company has maintained a strong dividend track record, with its payout growing at a compound annual rate of nearly 6% over the past five years. Overall, the company has raised its dividends for nine consecutive years.
Analysts expect this positive trend to continue as Agree Realty Corporation (NYSE:ADC) further expands its portfolio. In 2024 alone, the company invested $951 million across 282 properties. Supported by consistent portfolio growth and long-term leases— averaging more than eight years— ADC is positioned to remain a dependable source of monthly dividend increases in the years ahead.
Agree Realty Corporation (NYSE:ADC) currently offers a monthly dividend of $0.256 per share with a dividend yield of 4.10%, as of June 23.
4. Federal Realty Investment Trust (NYSE:FRT)
Number of Hedge Fund Holders: 34
Federal Realty Investment Trust (NYSE:FRT) owns a smaller portfolio of about 100 properties, but they’re located in high-income, densely populated areas, making them highly desirable. The REIT stands out for its unmatched dividend track record, having raised its payout for 57 straight years, which is the longest streak of any REIT and earns it Dividend King status.
Occupancy levels, which dipped during the pandemic, have since recovered. As of Q1 2025, occupancy reached 93.6%, with expectations of hitting 95% by year-end.
Federal Realty Investment Trust (NYSE:FRT) actively manages its portfolio, regularly buying, upgrading, and selling properties to boost value. Improvements range from minor updates to full redevelopments. This ongoing strategy keeps the portfolio high quality, based on the belief that well-located, well-maintained properties attract strong tenants and long-term value.
Federal Realty Investment Trust (NYSE:FRT) offers a quarterly dividend of $1.10 per share and has a dividend yield of 4.57%, as of June 23.
3. VICI Properties Inc. (NYSE:VICI)
Number of Hedge Fund Holders: 41
VICI Properties Inc. (NYSE:VICI) is one of the best dividend stocks in the REIT sector. Formed in 2017 from Caesars Entertainment’s bankruptcy, the company has rapidly expanded through casino acquisitions, a major merger, and diversification into experiential real estate. Its inflation-linked, triple-net leases provide stable, growing rental income.
VICI Properties Inc. (NYSE:VICI) is a strong dividend payer and maintains a healthy dividend payout ratio of around 75%. It has a strong investment-grade balance sheet, with leverage below 5.5 times. This financial strength allows it to keep expanding its portfolio, not just through acquisitions but also by funding partners’ property upgrades and developments, generating reliable income in the process.
Since going public, VICI Properties Inc. (NYSE:VICI) has raised its dividend every year, marking its seventh consecutive increase in late 2024. Its payout growth has outpaced peers, averaging 7% annually since 2018 versus the sector average of 2%. With solid financials and plenty of growth potential, Vici is well-positioned to keep growing its high-yield dividend.
VICI Properties Inc. (NYSE:VICI) pays a quarterly dividend of $0.4325 per share and has a dividend yield of 5.27%, as of June 23.
2. Prologis, Inc. (NYSE:PLD)
Number of Hedge Fund Holders: 55
Prologis, Inc. (NYSE:PLD) is among the best dividend stocks in the REIT sector. The company serves 6,500 customers worldwide, with 86% of income from the US. Its distribution centers handle 3% of global GDP annually. While e-commerce drives growth, 40% of its clients provide essential goods, making its business resilient in downturns.
Prologis, Inc. (NYSE:PLD) owns well-located properties that are highly sought after by retail, e-commerce, and logistics companies, keeping occupancy high and rents steadily rising. This results in consistent rental income, which supports a strong and growing dividend.
Prologis, Inc. (NYSE:PLD) currently offers a 3.7% yield, which is more than double the market’s 1.3%. The company has increased its dividend at a 13% annual rate over the past five years, outperforming both the broader market and most REITs. In addition, the company has raised its payouts for 11 consecutive years.
With strong financials, Prologis, Inc. (NYSE:PLD) is well-positioned to keep growing its dividend through rent increases, new warehouse developments on its large land holdings, selective data center construction, and strategic acquisitions. Currently, it offers a quarterly dividend of $1.01 per share.
1. American Tower Corporation (NYSE:AMT)
Number of Hedge Fund Holders: 73
American Tower Corporation (NYSE:AMT) is one of the best dividend stocks in the REIT sector. Founded in 1995, the company is one of the world’s largest REITs and a major player in wireless and broadcast communications infrastructure. While over half of its revenue comes from the top three US wireless carriers, recent growth has been driven by its expanding data center segment, benefiting from the rise of artificial intelligence.
American Tower Corporation (NYSE:AMT) follows a solid dividend strategy. Although it didn’t raise its payout in 2024, it announced a 5% increase in March and has averaged 20% annual dividend growth since 2013. The company offers a quarterly dividend of $1.70 per share and has a dividend yield of 3.04%, as of June 23.
American Tower Corporation (NYSE:AMT) is outperforming the market this year, surging by nearly 24% since the start of 2025.
While we acknowledge the potential of AMT 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 AMT and that has 100x upside potential, check out our report about this cheapest AI stock.
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