In this article, we will take a look at some of the best dividend stocks from the REIT sector.
REITs tend to be very domestic, rather than exposed to international commerce. A report from Cohen & Steers highlighted that publicly traded REITs can also be a defensive play during market dislocation, given their lease-driven income, with predictable cash flows and strong margins.
Historically, the predictable nature of these earnings has resulted in good returns, and they are generally thought to be particularly attractive during periods of market volatility. However, tariffs may have a different impact on various real estate segments. In industrial real estate, economic slowdowns in general, as well as supply chain issues, could pose challenges. Retailers who lease space in malls may have to pay more, crimping their margins, and construction companies could get squeezed by soaring lumber costs. Meanwhile, timberland owners could gain from a tighter supply and higher prices.
The office market, battered in the early days of the pandemic, experienced a decline in new construction plans. Yet momentum appears to be returning. JLL, a global commercial real estate and investment management firm, shared an office client report exclusively with Property Play, indicating that office transaction activity surged in the first half of this year. The total transaction volume rose 42% year over year, to $25.9 billion. Given this, we will take a look at some of the best dividend stocks in the REIT sector.
robert cicchetti / Shutterstock.com
Our Methodology:
For this list, we scanned Insider Monkey’s database of nearly 1,000 hedge funds as of Q2 2025 and picked REIT companies that pay regular dividends to shareholders. Next, we narrowed down 12 companies that are popular among elite funds at the end of Q2 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).
12. Universal Health Realty Income Trust (NYSE:UHT)
Number of Hedge Fund Holders: 9
Universal Health Realty Income Trust, Inc. (NYSE:UHT) is a real estate investment trust focused on healthcare and human services-related properties. The company owns 76 properties located in 21 states.
Universal Health Realty Income Trust (NYSE:UHT) is not on the radar for most investors, but its dividend story deserves to be told. Furthermore, the robust cash balance allows it to continue paying dividends for years to come. In the last quarter, the company brought in an operating cash flow of $909 million and finished the quarter with $137.6 million.
Universal Health Realty Income Trust (NYSE:UHT) must pay at least 90% of its taxable income as dividends to maintain its REIT status. Much of the trust’s performance depends on acquiring and managing profitable healthcare properties, navigating changes in healthcare reimbursement regulations, and managing debt successfully to protect earnings – particularly in the face of rising interest rates.
On September 10, Universal Health Realty Income Trust (NYSE:UHT) declared a quarterly dividend of $0.74 per share, which was in line with its previous dividend. All in all, the company has increased its dividends for 41 straight years, which makes it one of the best dividend stocks in the REIT sector. The stock has a dividend yield of 7.59% as of October 1.
11. Arbor Realty Trust, Inc. (NYSE:ABR)
Number of Hedge Fund Holders: 14
Arbor Realty Trust, Inc. (NYSE:ABR) is a mortgage REIT that focuses on multifamily properties. The company’s business model provides it with multiple streams to generate revenue. The mREIT has stable long-term cash flows from the servicing fees, escrow income, and net interest income, and also generates a one-time revenue from origination fees. This multi-pronged tactic is also different from the mREITs that are mainly reliant on net interest margin.
Arbor Realty Trust, Inc. (NYSE:ABR)’s large operating platform and focus on multifamily have enabled the company to generate fairly consistent earnings through various market cycles. The company has demonstrated a track record of consistently paying dividends that are at least equal to the previous quarter for more than ten years – an achievement that not many other mREITs would claim to have in recent years.
Though Arbor Realty Trust, Inc. (NYSE:ABR) hasn’t raised its dividends in the recent past, the company has been rewarding shareholders with regular dividends for years. Currently, it offers a quarterly dividend of $0.30 per share and has a dividend yield of 10.75%, as recorded on October 1.
10. Innovative Industrial Properties, Inc. (NYSE:IIPR)
Number of Hedge Fund Holders: 18
Innovative Industrial Properties, Inc. (NYSE:IIPR) is a real estate investment trust company that specializes in the acquisition and management of cannabis-related facilities. As of the company’s recent report, it has 108 properties across 19 states.
Innovative Industrial Properties, Inc. (NYSE:IIPR)’s income is primarily derived from long-term triple-net leases, in which tenants pay for property taxes, insurance, and maintenance in addition to rent. This arrangement is intended to provide a consistent and predictable cash flow.
The success of Innovative Industrial Properties, Inc. (NYSE:IIPR) relies on the ability to pick good tenants in a tightly regulated industry subject to constant legal reform. Among top priorities are to manage tenant concentration risk, deal with regulatory headwinds, and maintain financial flexibility.
Innovative Industrial Properties, Inc. (NYSE:IIPR) is a solid dividend company. The company last announced a dividend hike in June 2024, which was its eighth consecutive year of dividend growth. It hasn’t announced any increase in payout this year, but its financial position is sound, which suggests that it could be on the horizon. Currently, it offers a quarterly dividend of $1.90 per share and has an attractive dividend yield of 13.75%, as of October 1.
