These 3 REITs have the longest periods of annual dividend growth

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Investors seeking steady income and long-term growth often turn to real estate investment trusts (REITs). REITs own, operate or finance income-producing real estate, allowing individuals to invest in various types of real estate without having direct ownership or management responsibilities. REITs must distribute a large percentage of taxable income to shareholders through dividends, which often results in high yields.

Of the many options, only three publicly traded REITs have increased their dividends for 35 consecutive years or more. Let’s look at each to determine if one or more belong in your portfolio.

Don’t miss:

NNN REIT, Inc. – 35 consecutive years

NNN REIT, Inc. (NYSE:NNN) owns and manages a diversified portfolio of real estate properties in the US. As of June 30, its portfolio includes 3,548 properties in 49 states with more than 36 million square feet of gross leasable area. Its tenants include 7-Eleven, Mister Car Wash, Camping World, Dave & Buster’s, LA Fitness and AMC Theater.

NNN REIT currently pays a quarterly dividend of $0.58 per share, which equates to an annual dividend of $2.32 per share. At the time of writing, this gives its stock a yield of about 5.1%.

NNN REIT has the third-longest streak of annual dividend increases in the industry. It has raised its annual dividend payment for 34 consecutive years, and July’s 2.7% increase is on track to mark its 35th straight year with an increase in 2024.

Universal Health Realty Income Trust – 38 consecutive years

Universal Health Realty Income Trust (NYSE:UHT) is a leading owner and manager of health care and human services facilities in the US. Its portfolio includes 76 investments in 21 states, including acute care hospitals, behavioral health care facilities, rehabilitation hospitals, subacute care facilities, surgery centers, child care centers and medical office buildings.

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Universal Health Realty currently pays a quarterly dividend of $0.73 per share, which equates to an annual dividend of $2.92 per share. At the time of writing, this gives his stock a yield of around 7%.

Universal Health Realty has the second-longest streak of annual dividend increases in the REIT industry. It has raised its annual dividend payment for 37 consecutive years, and its 0.7% increase in June is on pace for 2024 to mark its 38th consecutive year of growth.

Trends:

Federal Realty Investment Trust – 57 consecutive years

Federal Realty Investment Trust (NYSE:FRT) is a leading owner and manager of commercial and mixed-use properties in the US. As of June 30, its portfolio comprises 102 properties containing approximately 27 million square feet, 3,400 tenants and 3,100 residential units. Its properties are located in top suburban markets including Boston, Chicago, Miami, New York City, Philadelphia, Phoenix, Silicon Valley and Washington, DC

Federal Realty currently pays a quarterly dividend of $1.10 per share, which equates to an annual dividend of $4.40 per share. At the time of writing, this gives his stock a yield of about 3.9%.

Federal Realty is the king of dividend growth in the REIT industry. It has increased its annual dividend payout for 56 consecutive years, the longest consecutive record in the industry. Its 0.9% increase earlier this month puts it on track for 2024 to mark its 57th consecutive year of growth.

Better returns than some REITs?

The current high interest rate environment has created an incredible opportunity for income investors to earn massive returns, but not through REITs.

Arrived Homes, the investment platform backed by Jeff Bezos, has launched its Private Credit Fund, which provides access to a pool of short-term loans backed by residential real estate with a target net annual return of 7% to 9% paid investors monthly. It paid 8.1% in July. The best part? Unlike other private credit funds, it has a minimum investment of only $100.

As long-term rates fall and short-term rates remain high, there is a unique opportunity to invest in fix & flip loans before yields fall. Check out Benzinga’s favorite high yield deals.

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