I Have Invested in Dividends for 10 years—These REITs Have Delivered My Best Yield-to-Risk Returns

Investing in real estate might not be possible for everyone but there’s a way to make the most of the gains in the real estate industry. Real estate investment trusts (REITs) have become an appealing choice for passive income investors. They offer high yields, can be easily traded and they tend to outperform the market when interest rates are down. 

REITs are companies that own real estate and pay 90% of their income to shareholders in the form of dividends. I’m not saying REITs are better than stocks but I do believe that REITs are an ideal way of entering the real estate industry without a large capital investment. I’ve invested in REITs for 10 years and here are the most reliable dividend payers. 

Federal Realty Investment Trust

Federal Realty Investment Trust (NYSE: FRT) is a shopping center-focused business that owns properties in eight metropolitan markets. The REIT has a dividend yield of 4.61%. Exchanging hands for $95, FRT has dropped 12% year-to-date and it has increased dividends for 57 consecutive years. 

It owns and operates shopping centers and other mixed-use assets in metropolitan areas. Over the years, the REIT has created a portfolio that has been able to see net operating income growth and re-leasing in the past decade. Shopping centres are going to be around for as long as we can imagine which makes its portfolio worth a consideration. 

Further, I believe the REIT will be able to attract tenants to continue seeing growth despite a tough retail environment. While several retailers are competing with e-commerce companies, certain businesses like grocery stores, and fitness centers will always have a physical presence. For such businesses, location will continue to play a big role and this is where the Federal Realty Investment Trust will benefit. 

Since the company has long-term leases, its revenue is predictable and protected from the market’s ups and downs. The solid locations will continue to generate rent growth for the business. 

Realty Income

With an attractive dividend yield of 5.76%, Realty Income Corporation (NYSE: O) is one of the top dividend REITs to own. The company has increased its payouts annually for the past 30 years and has a streak of 110 quarterly increases. 

Realty Income owns 15,600 properties out of which most are single-tenant, triple-net-leased properties. The company is highly diversified and it has rents coming from retail properties and industrial assets. Additionally, it does not limit itself to the U.S., the company owns properties in Europe as well.

Known as the “Monthly Dividend Company”, Realty Income generates the most reliable source of income for investors. About 80% of its tenants are retail which ensures steady income year after year. With over 15,000 properties, the risk of nonpayment of rent is minimal.

Rent increase is not the most convenient way to increase income which is why Realty Income relies on acquisitions. Besides expanding in Europe, the company has spent billions in acquisitions since 2019 and while it saw a dip in business during the pandemic, it has managed to bounce back. 

Exchanging hands for $55, O stock is up 6.3% year-to-date and 3.5% in a year. With a solid dividend yield and a history of rewarding investors, Realty Income hasn’t disappointed me in a decade. 

Healthpeak Properties

Healthpeak Properties (NYSE:DOC) is another REIT with a high dividend yield. It owns a diversified portfolio of healthcare properties including medical offices, senior housing facilities, hospitals and life science assets. Since the company operates in the healthcare industry, it is never going to run out of business. Its primary portfolio consists of the life science and medical offices which continue to attract top tenants. This works as an advantage for the company.

Healthpeak is about quality over quantity and its high-quality assets have made it one of the best REITs to own. The company closed a deal with Physicians Realty Trust for $5 billion and added 16 million square feet to its portfolio. It generates over 50% of the income from the medical office segment. 

Healthpeak has a dividend yield of 7.13% and is exchanging hands for $17. The stock has dropped in value in 2025 and is down from the high of $23. It is down 15% year-to-date and 12% in 12 months.

If you’re a passive income investor, Healthpeak Properties is an ideal way to enjoy steady dividends. While you may not see capital appreciation soon, the dividends will remain steady. The company has been paying dividends for 31 years. 

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