The best REITs for dividend growth
The best REITs for dividend growth: Investing in real estate can be a lucrative way to build wealth and generate income. But for those who don’t want to own physical property or deal with the hassle of being a landlord, there is another option: Real Estate Investment Trusts, or REITs.
The best REITs for dividend growth
REITs are companies that own and operate income-producing real estate properties. They allow investors to own a portion of these properties and receive a share of the rental income generated. And the best part? REITs are required by law to distribute at least 90% of their taxable income to shareholders in the form of dividends.
But not all REITs are created equal. Some may offer high yields but have limited growth potential, while others may have strong growth potential but lower yields. So, which REITs are the best for dividend growth? Let’s take a look.
Realty Income Corp (O)
When it comes to REITs, “The Monthly Dividend Company” reigns supreme. Realty Income Corp has paid 604 consecutive monthly dividends and has increased its dividend every year since 1994. It currently offers a dividend yield of 4.7% and has a history of consistent dividend growth.
Plus, with a portfolio of over 6,500 properties in diverse industries, including convenience stores, pharmacies, and dollar stores, Realty Income Corp offers a stable and reliable source of income.
Prologis Inc. (PLD)
As the largest owner and operator of industrial real estate in the world, Prologis Inc. is well-positioned to capitalize on the growth of e-commerce and logistics.
The company’s properties are in high demand from companies looking to expand their supply chain and distribution networks. Prologis currently offers a dividend yield of 2.5% and has increased its dividend by an average of 8% per year over the past five years.
Ventas Inc. (VTR)
Ventas Inc. is a healthcare REIT with a diverse portfolio of properties, including senior housing communities, medical office buildings, and research facilities.
The company’s focus on the growing healthcare sector has helped it deliver consistent growth and reliable income. Ventas currently offers a dividend yield of 4.8% and has increased its dividend for 12 consecutive years.
Digital Realty Trust Inc. (DLR)
Digital Realty Trust Inc. is the largest data center REIT in the world, with over 280 data centers in 50 global markets. The company’s properties are essential infrastructure for companies in the digital economy, making it a reliable source of income.
Digital Realty currently offers a dividend yield of 3.1% and has increased its dividend by an average of 8% per year over the past five years.
American Tower Corp. (AMT)
American Tower Corp. is a global leader in wireless communications infrastructure, with over 181,000 cell towers and other sites in 20 countries.
The company’s properties are in high demand from wireless carriers looking to expand their networks and improve coverage. American Tower currently offers a dividend yield of 1.8% and has increased its dividend by an average of 24% per year over the past five years.
Final thoughts
Investing in REITs can be a smart way to generate income and diversify your portfolio. But as with any investment, it’s important to do your research and choose wisely. By focusing on REITs with strong growth potential and a history of consistent dividend growth, you can build a portfolio that delivers reliable income and long-term growth.
You might also like Why billionaires are buying REITs right now (And you might should too)
