Three REITs That Could Serve as Forever Symbols of Dividend Wealth

Why REITs Stand Out for Long-Term Income Investors

Over the past five decades, dividend-paying stocks in the S&P 500 have crushed their non-dividend counterparts by a margin exceeding 2:1, according to research from Ned Davis Research and Hartford Funds. But here’s what really moves the needle: companies that consistently hike their payouts tend to deliver the strongest returns. Among the most reliable dividend growers, real estate investment trusts (REITs) have emerged as exceptional vehicles for building passive income streams that can last a lifetime.

The real estate sector offers a unique advantage. Many REITs distribute steady, growing dividends while maintaining strong fundamentals. Let’s examine three standout performers that exemplify this dividend philosophy.

Extra Space Storage: The Self-Storage Heavyweight

Extra Space Storage (NYSE: EXR) commands the U.S. self-storage market with roughly 4,200 properties spanning over 322 million rentable square feet—approximately 15.3% of the entire American market. The company’s portfolio structure is strategically diversified: it owns 48% outright, holds interest in 11% through joint ventures, and manages 41% as a third-party operator. This arrangement creates dual income streams—steady rental revenue from owned assets and stable management fees from third-party properties.

The company has aggressively expanded through acquisitions, joint venture investments, and platform growth. A cornerstone moment came in 2023 with the $15 billion acquisition of Life Storage, significantly amplifying its market position.

The dividend growth trajectory tells the real story: over the past decade, Extra Space Storage has ramped up its payout by more than 110%, currently yielding above 6%. The REIT’s fortress balance sheet provides ample firepower for future acquisitions and dividend increases. With a proven ability to buy properties from joint venture partners, take over managed assets when owners exit, and fund development projects through its bridge lending platform, growth catalysts remain abundant.

Perhaps most impressive is the total return metric: investors have enjoyed a 2,400% gain over 20 years—the third-best performance among all REITs. This track record makes it a true forever symbol of wealth creation through disciplined dividend reinvestment.

Realty Income: The Dividend Aristocrat of Real Estate

Realty Income (NYSE: O) operates as the world’s sixth-largest REIT, anchoring a global portfolio exceeding 15,000 properties across retail, industrial, gaming, and mixed-use sectors in the U.S. and Europe. The secret sauce: nearly all holdings are secured by long-term net leases, where tenants absorb all operating expenses (maintenance, property taxes, insurance). This lease structure produces remarkably stable, predictable cash flows.

What separates Realty Income from peers is its unmatched dividend consistency. The REIT has raised distributions for 112 consecutive quarters—spanning over two and a half decades. This translates to a 4.2% compound annual dividend growth rate. With a current yield of 5.7%, investors receive both immediate income and built-in growth.

This dividend discipline has translated into a robust 13.7% compound annual total return for long-term shareholders. Looking ahead, Realty Income is positioned to extend this streak. The global net lease market represents an estimated $14 trillion addressable opportunity, and the company maintains one of the sector’s strongest balance sheets. The steady expansion of income-producing properties provides the runway for continued dividend increases, making it another compelling forever symbol for buy-and-hold investors.

Rexford Industrial Realty: The Specialized Play with Outsized Growth

Rexford Industrial Realty (NYSE: REXR) takes a focused approach, concentrating exclusively on Southern California’s industrial real estate market through 420 properties totaling 51 million square feet. While this narrow geographic focus might seem limiting, it’s actually a strength—Southern California stands as one of the world’s premier industrial hubs, blessed with strong demand and constrained supply.

These dynamics create an environment where Rexford consistently signs new leases at premium rates. Recent signings have averaged 23.9% above prior rates, with embedded annual growth reaching 3.6%—these figures signal healthy rent acceleration in a tight market. The company compounds returns through strategic redevelopment projects and accretive acquisitions.

The result: a 15% compound annual dividend growth rate over the past five years—among the highest in the REIT space. With a 4.2% yield and a robust balance sheet supporting continued portfolio expansion, Rexford maintains significant upside potential. Strong industrial demand and limited supply constraints suggest dividend acceleration could persist, establishing this REIT as another worthy forever symbol for income-focused portfolios.

Building Wealth Through REIT Discipline

The three REITs above share common characteristics: disciplined capital allocation, consistent dividend growth, balance sheet strength, and multi-year track records of shareholder returns. For investors seeking passive income that compounds over decades, these instruments offer proven paths to long-term wealth accumulation. REITs’ mandated distribution structure (required to pay out 90% of taxable income) ensures that dividend growth translates directly to shareholder benefit, making them ideal forever holdings for patient capital.