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.
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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.
9. NNN REIT, Inc. (NYSE:NNN)
Number of Hedge Fund Holders: 24
NNN REIT, Inc. (NYSE:NNN) is a Florida-based real estate investment trust company that mainly invests in restaurant properties. The company has grown its portfolio by adding income-producing retail properties. It spent $565.5 million in 75 acquisitions over the past year, which had an average initial cap rate of 7.7% and a weighted average lease term of 18.5 years. The acquisitions were funded via post-dividend free cash flow, by the sale of 41 non-core properties for $148.7 million, by $214.3 million through equity offerings, and by additional long-term borrowings.
As of June 30, NNN REIT, Inc. (NYSE:NNN) owned 3,663 properties in all 50 states, aggregating approximately 38.3 million square feet of rentable space and a weighted-average remaining lease term of 10 years. Its growth is largely driven by its existing tenants. The company has purchased in excess of $10 billion in properties since 2007, with over 70% of these transactions derived from existing tenant relationships.
On top of that, NNN REIT, Inc. (NYSE:NNN) has a strong dividend history. The company has been increasing its dividends for 36 straight years, making it one of the best REIT dividend stocks. It pays a quarterly dividend of $0.60 per share, with a dividend yield of 5.58% as of October 1.
8. Park Hotels & Resorts Inc. (NYSE:PK)
Number of Hedge Fund Holders: 26
Park Hotels & Resorts Inc. (NYSE:PK) is an American real estate investment trust that invests primarily in hotel assets. The company’s portfolio includes leading hotel brands as Hilton, Marriott, and Hyatt across urban, resort, and conference-focused locations. A substantial portion of the company’s cash flow is derived from hotel operations, its core business, and the company works to add property value through redevelopment, targeted acquisitions, and dispositions.
There are a few critical areas of focus in Park Hotels & Resorts Inc. (NYSE:PK)’s current strategy. The company is recycling capital from non-core assets to core and high-return projects, including major renovations and refurbishments at Flagship hotels. At the same time, it is focusing on cost management and holding a conservative balance sheet, which is an important consideration in a business characterized by economic cycles and relatively high fixed costs.
The dividend history of Park Hotels & Resorts Inc. (NYSE:PK) makes it look quite attractive for income and value investors. As of October 1, the stock has a dividend yield of 9.07%, and the dividend is $0.25 per quarter.
7. Realty Income Corporation (NYSE:O)
Number of Hedge Fund Holders: 27
Realty Income Corporation (NYSE:O) is considered one of the most popular REITs in the country due to its monthly distribution to investors. The company’s real estate holdings have more than doubled over the past four years through mergers with Vereit and Spirit Realty Trust. The company has approximately 15,600 commercial properties, with more than 1,600 clients in 91 industries, spanning every US state, the UK market, and 7 other European markets.
Compared to the broader retail sector, Realty Income Corporation (NYSE:O)’s portfolio is focused on retailers that historically have performed relatively well in economic slowdowns. In the past year, the company’s largest tenants were Walgreens, 7-Eleven, Dollar General, and Dollar Tree, with none representing more than 3.5% of its annual total rent. While a handful of retailers have struggled and closed stores, its more financially stable peers opening new stores have tempered some of that force.
This is the reason why Realty Income Corporation (NYSE:O)’s occupancy rate has remained consistently above 96% since its IPO in 1994. Moreover, its year-end occupancy rate ticked up from 98.6% in 2023 to 98.7% in 2024. The company’s scale, diverse portfolio, and durability allow it to be dependable for long-term investors.
Realty Income Corporation (NYSE:O) increased its monthly dividend by 0.2% to $0.2695 per share on September 9, which is the 132nd raise of its dividend since it went public in 1994. The stock supports a dividend yield of 5.35%, as of October 1.
6. CubeSmart (NYSE:CUBE)
Number of Hedge Fund Holders: 28
CubeSmart (NYSE:CUBE) is a self-managed, self-administered real estate investment trust that provides storage solutions that are both affordable and convenient, with climate-controlled units available at many locations for residential and business use. It is considered one of the top three self-storage owners and operators in the US in 2025, according to Self-Storage Almanac.
CubeSmart (NYSE:CUBE) showed strong earnings in the second quarter of 2025. The company’s revenue was $282.3 million, an increase of 6% compared with the prior-year period. The revenue also surpassed analysts’ estimates by $6.77 million. The company noted that the rental season was a little better than last year and that the principal key operating ratios have continued to strengthen in the second quarter and into July. Market fundamentals were becoming more stable, helped by the dampening effects of new supply lessening, seasonal improvement in prices for new arrivals, and the continued robustness of the current client base.
CubeSmart (NYSE:CUBE) is also popular because it has paid regular dividends to shareholders over the years. The company pays a quarterly dividend of $0.52 per share and has a dividend yield of 5.14%, as of October 1.
5. Agree Realty Corporation (NYSE:ADC)
Number of Hedge Fund Holders: 34
Agree Realty Corporation (NYSE:ADC) operates only in the retail space and owns a smaller portfolio than its competitors. Although its properties are adequate for diversification, its comparatively smaller size is an advantage in itself. The company is able to grow more rapidly with less investment, with growth being simpler from its current position. This has been a significant advantage for dividend growth-oriented shareholders, as the firm’s dividend rose by approximately 66% within the last decade.
Looking forward, Agree Realty Corporation (NYSE:ADC) will be making an approximate $1.5 billion investment in real estate in 2025. With steady portfolio growth and solid tenant relationships— backed by average lease durations of over eight years— the company is set to be a consistent and reliable monthly dividend grower for the long haul.
Agree Realty Corporation (NYSE:ADC) initiated quarterly dividend payments to its shareholders, which changed in 2021 with the company adopting monthly payments. It now has a monthly dividend payment of $0.256 per share and a dividend yield of 4.28%, as of October 1.
4. VICI Properties Inc. (NYSE:VICI)
Number of Hedge Fund Holders: 34
VICI Properties Inc. (NYSE:VICI) is a real estate investment trust with expertise in gaming, hospitality, and experiential properties, targeting ownership, acquisition, and financing in these segments. It pays out about 75% of its adjusted funds from operations (FFO), enabling it to reinvest a significant amount of its consistently expanding cash flow into new income-generating experiential properties. Its dividend is especially attractive to income-oriented investors, with the latest 4% hike taking the quarterly distribution to $0.45 per share. It is the eighth year in a row that dividends have increased, solidifying its position as one of the best dividend stocks in the REIT sector.
VICI Properties Inc. (NYSE:VICI) is also supported by a sound investment-grade balance sheet, bolstered by a conservatively stated leverage ratio of 5.2 times, which is at the lower end of its 5.0 to 5.5 target range. This conservatively stated financial position gives the company further flexibility in pursuing new investments.
The combination of stable cash flows and conservative financial management provides VICI Properties Inc. (NYSE:VICI) with a solid foundation for maintaining its high-yield dividend far into the future. The stock has a dividend yield of 5.47%, as of October 1.
3. Federal Realty Investment Trust (NYSE:FRT)
Number of Hedge Fund Holders: 34
Federal Realty Investment Trust (NYSE:FRT) is a retail property owner and manager that includes shopping centers and mixed-use developments. Like other REITs, the company must distribute at least 90% of its taxable income to shareholders, so it’s a great option for dividend investors.
Federal Realty Investment Trust (NYSE:FRT) focuses on areas with high population density and higher-income households. This provides some protection against economic downturns as affluent communities are more resilient during recessions and inflationary periods. With a solid business model, a strong development pipeline, and growing funds from operations, the company is one of the best dividend stocks in the REIT sector.
On August 6, Federal Realty Investment Trust (NYSE:FRT) increased its quarterly dividend by 3% to $1.13 per share. This was the company’s 58th consecutive year of dividend increases. As of October 1, the stock was yielding 4.54%.
2. Prologis, Inc. (NYSE:PLD)
Number of Hedge Fund Holders: 56
Prologis, Inc. (NYSE:PLD) is a California-based REIT that invests in logistics facilities. The company is well-positioned for long-term growth with a high-quality property portfolio, global reach and scale, data, and technology. CEO Hamid Moghadam talked about long-term growth and pointed to a favorable demand, supply, and rental trend environment and a 30% upside in existing leases. Additional drivers are e-commerce, supply chain modernization, higher inventory for safety, and nearshoring and onshoring.
Prologis, Inc. (NYSE:PLD)’s entry into data center development on land it already owns will be a meaningful contributor to growth and offer attractive risk-adjusted returns. With an experienced management team, the company can execute on these secular trends globally. The structural demand for logistics space, built in rental upside and strategic entry into data centers, provides a foundation for future earnings and cash flow growth.
Prologis, Inc. (NYSE:PLD) is one of the best dividend stocks in the REIT sector as it has been growing dividends for 11 years. The company pays a quarterly dividend of $1.01 and has a 3.47% dividend yield as of October 1.
1. American Tower Corporation (NYSE:AMT)
Number of Hedge Fund Holders: 70
American Tower Corporation (NYSE:AMT) owns, acquires, and develops communications real estate assets, including cell towers and data centers, in domestic and foreign markets. The company’s primary business is leasing space on its properties to wireless carriers and enterprise customers. One of the best dividend stocks in the REIT industry, American Tower has increased its dividend for 13 years in a row. It pays a quarterly dividend of $1.70 per share, yielding 3.52% as of October 1.
American Tower Corporation (NYSE:AMT) specializes in owning and operating the land, buildings, and tower locations necessary for mobile networks and internet infrastructure. In addition, it builds fiber-optic networks connecting 5G small cell locations to the wider internet— an increasingly vital service as both consumers and businesses become more dependent on mobile connectivity for internet access.
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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