These 3 REITs Have The Longest Streaks Of Annual Dividend Increases

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

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

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NNN REIT, Inc. – 35 Consecutive Years

NNN REIT, Inc. NNN owns and manages a diversified real estate portfolio across the U.S. As of June 30, its portfolio comprises 3,548 properties in 49 states containing over 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 Theatre.

NNN REIT currently pays a quarterly dividend of $0.58 per share, equating to an annualized dividend of $2.32 per share. At the time of this 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 its 2.7% hike in July has it on track for 2024 to mark the 35th consecutive year with an increase.

Universal Health Realty Income Trust – 38 Consecutive Years

Universal Health Realty Income Trust UHT is a leading owner and manager of health care and human service-related facilities in the U.S. Its portfolio comprises 76 investments across 21 states, including acute care hospitals, behavioral health care facilities, rehabilitation hospitals, subacute care facilities, surgery centers, child care centers and medical office buildings.

Universal Health Realty currently pays a quarterly dividend of $0.73 per share, equating to an annualized dividend of $2.92 per share. At the time of this writing, this gives its stock a yield of about 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% hike in June has it on pace for 2024 to mark the 38th consecutive year with an increase.

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Federal Realty Investment Trust – 57 Consecutive Years

Federal Realty Investment Trust FRT is a leading owner and manager of retail and mixed-use properties in the U.S. 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 in top suburban markets, including Boston, Chicago, Miami, New York City, Philadelphia, Phoenix, Silicon Valley and Washington, D.C.

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

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

Better Yields Than Some REITs?

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

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

As long-term rates go down and short-term rates stay high, there’s a unique chance to invest in fix & flip loans before yields drop. Check out Benzinga's favorite high-yield offerings. 

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