Building Long-Term Wealth: Why These US REITs Remain Top Dividend Payers

The Case for Dividend-Focused Investing

Investors seeking reliable passive income streams have long favored dividend-paying stocks. Historical performance data demonstrates their effectiveness: over the past five decades, dividend-yielding companies in the S&P 500 have significantly outpaced their non-paying counterparts, according to analysis from Ned Davis Research and Hartford Funds. The most impressive returns, however, have consistently come from firms that demonstrate a commitment to regularly expanding their dividend payments.

The real estate investment trust (REIT) sector represents a particularly attractive hunting ground for dividend growth opportunities. These entities are structured to distribute the majority of their income to shareholders, making them ideal vehicles for those pursuing lifetime passive income. Within this landscape, three standout performers have demonstrated exceptional dividend resilience and growth trajectories.

Extra Space Storage: America’s Self-Storage Powerhouse

Extra Space Storage operates as the dominant player in the US self-storage market, controlling approximately 15.3% of the nation’s total supply. The company maintains direct ownership of about 48% of its roughly 4,200 facilities, holds joint venture stakes in an additional 11%, and manages the remaining 41% through a third-party network. This diversified ownership structure generates dual revenue streams: owned properties produce escalating rental income while managed properties deliver consistent management fees.

The firm has pursued aggressive portfolio expansion through strategic acquisitions, joint venture partnerships, and development of its management platform. A landmark 2023 acquisition of fellow REIT Life Storage for $15 billion exemplifies this growth strategy. Such expansion capabilities have translated into impressive shareholder returns: over a decade-long period, the company increased its dividend payout by more than 110%, currently offering a yield exceeding 6%.

Looking ahead, Extra Space Storage maintains substantial room for continued dividend growth. Its robust balance sheet provides flexibility for capital deployment, while built-in growth opportunities exist through acquiring properties from current joint venture partners, taking over managed assets when owners exit, and funding development projects through its bridge lending platform. The company’s success is evident in its 20-year total return performance—surpassing 2,400%—ranking it among the sector’s top three performers.

Realty Income: The Consistent Dividend Raiser

Realty Income ranks as the sixth-largest REIT globally, with a portfolio exceeding 15,000 properties spanning retail, industrial, gaming, and other asset classes across the US and European markets. The company’s primary investment focus centers on properties structured with long-term net leases, a mechanism that ensures exceptional income stability. Under net lease arrangements, tenants assume responsibility for operational costs including maintenance, property taxes, and insurance—creating predictable cash flows for the REIT.

The dividend track record speaks for itself: 112 consecutive quarterly increases spanning three decades of growth, with a compound annual growth rate of 4.2%. The current dividend yield stands at 5.7%. This unwavering commitment to shareholder distributions has supported a robust 13.7% compound annual total return for long-term investors.

Realty Income’s expansion pipeline remains robust, with approximately $14 trillion identified in the global net lease real estate market. Combined with one of the sector’s strongest balance sheets, the foundation exists for sustained dividend growth momentum. As the company continues acquiring income-producing assets, shareholders can reasonably expect the upward dividend trajectory to continue.

Rexford Industrial Realty: Regional Specialist with Exceptional Growth

Rexford Industrial Realty takes a focused geographic approach, concentrating exclusively on the Southern California industrial real estate market. Owning 420 facilities comprising 51 million square feet, the company operates within one of the world’s largest industrial regions, characterized by strong demand fundamentals and constrained supply.

These favorable market conditions translate directly into leasing success. Recent lease signings demonstrate this strength: new agreements have averaged 23.9% above previous rates, featuring embedded annual rental growth of 3.6%. This pricing power enables the company to boost rental income organically while also pursuing expansion through redevelopment initiatives and strategic acquisitions.

The financial impact is striking: over the past five years, Rexford has grown its dividend at an exceptional 15% compound annual rate. With continued industrial space demand and a solid balance sheet supporting portfolio expansion, the company appears positioned to sustain this growth trajectory. The current 4.2% dividend yield provides investors with immediate income while appreciating capital value over time.

The REIT Dividend Strategy for the Long Term

These three companies exemplify why REITs merit consideration as core holdings for investors prioritizing long-term dividend growth. Each company demonstrates a proven ability to increase shareholder distributions consistently, supported by expanding asset bases and favorable market dynamics. For those constructing portfolios designed to generate decades of rising passive income, firms like Extra Space Storage, Realty Income, and Rexford Industrial Realty offer compelling evidence that dividend-focused investing can deliver substantial wealth accumulation over extended time horizons.