Only three of them are REITs – Can you guess which ones?

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It is well known that dividend stocks can help investors build wealth and generate passive income. However, not all dividend stocks are created equal, and only 68 have earned Dividend Aristocrat status. Despite the REIT sector’s solid track record of performance, only three REITs are Certified Dividend Aristocrats. Read on to find out which ones.

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How do stocks achieve dividend aristocrat status?

Achieving dividend aristocrat status requires stocks to hit several key metrics in terms of longevity, performance and name recognition. First, the company issuing the shares must have a market capitalization of $3 billion and an average daily trading activity of $5 million. Second, the company must be a member of the S&P 500. Finally, it must have increased its dividend paid to shareholders for at least 25 consecutive years.

Federal Realty Investment Trust (NYSE: FRT)

Federal Realty Investment Trust is a large operator of shopping centers and shopping centers in America’s largest metropolitan areas. This REIT owns and operates over 26 million square feet of commercial space, but has also diversified into the residential sector, where it manages 3,100 multifamily units.

Federal Realty Investment has a market capitalization of $9.46 billion and its stock trades in the range of $113. The share price has largely risen since 2024 and pays a dividend of 3.85%.

That’s $4.35/share, and Federal Realty Trust has raised its dividend for 50 consecutive years. This means that this REIT is one of the very rare stocks that has achieved both dividend king and dividend aristocrat status. Federal Realty Investment Trust’s track record of performance makes it an offering worthy of strong attention from dividend investors.

Essex Property Trust (NYSE: ESS)

Essex Property Trust is one of America’s largest multifamily residential REITs. It owns and operates 254 separate assets totaling 62,000 units. More importantly, for Essex investors, the majority of its portfolio assets are in the most expensive rental markets on America’s West Coast. High house prices create an ideal scenario for investors in Essex, as most residents in these markets have no choice but to rent.

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This helps explain Essex’s impressive track record and estimated market cap of $19.66 billion. Essex stock is currently trading at $312.51 and pays a 3.14% dividend, which is $9.81/share. Essex’s long-term future looks solid as long as California’s median home price is in the six figures.

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Real Estate Income (NYSE: A)

Real Estate Income has surpassed Dividend Aristocrat status and entered the rarefied air of the Dividend King. This REIT specializes in triple-net leased retail properties in freestanding buildings, suitable for large retailers who typically secure reliable tenants and sign long-term leases. Realty Income’s portfolio includes 15,000 properties in 49 states and has recently diversified into the gaming, industrial and distribution sectors.

Realty Income’s current market cap is $53.67 billion, and its shares trade at $61.63. Lately, Realty Income’s stock price has been rising steadily on the back of solid earnings in Q2 2024. The current dividend estimate is a very investor-friendly 5.21%, or $3.21/share.

That alone is enough to make Realty Income very popular among investors. However, that’s not the only reason I love this stock. Unlike many other REITs or dividend stocks, which pay dividends every quarter, Realty Income pays them monthly. In addition, this aristocratic dividend REIT has also achieved dividend king status by increasing its shareholder dividend for 50 consecutive years!

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This Article Very Few Investments Achieve Dividend Aristocrat Status: Only Three Of Them Are REITs – Can You Guess Which? originally appeared on Benzinga.com