5 REITs With Impressive Dividend Growth (2024)

There’s intense market volatility. And then there’s real estate investment trusts (REITs) and dividend growth.

Out of those possibilities, which do you think is making the most headlines?

If you guessed Option #1, you’d be correct. Though there’s no prize for getting it right.

Anyone who’s been watching the markets knows they’ve been more than a little volatile lately . Down 500 points one day… Recovering most of that the next few trading sessions…

And then dropping all over again the very next week.

Looking at a five-year chart, there’s been clear and even downright amazing progress made to all three major U.S. market platforms. The Dow, the Nasdaq and the S&P have climbed to levels nobody ever thought possible in event the recent past.

Yet it’s hard to focus on that good news when last year turned out to be as nauseating as it was.

As for 2019, it’s only two weeks old so far. Yet it isn’t showing any “New year spirit” as of yet.

The old market adage says that, as January goes, so goes the rest of the year. If that’s true, it’s hardly comforting.

Then again, this could be an exception to the rule. After all, nobody claimed it was set in stone. Right?

There’s no crystal ball to be had here, yet inactivity could be every bit as financially disappointing as making a decision.

So what’s an investor to do?

REITs and Blood in the Streets

The short-term situation can seem hopeless, and you might be tempted to take all your money out of everything but the most iron-clad bonds.

But that would be foolish, potentially costing you some significantly sized returns in the process.

The truth is that it’s times like these that make for the best buying opportunities. You’ve probably heard the Wall Street adage to buy when there’s blood in the streets – a disconcerting thought to be sure.

Nobody knows how many more stomach-churning drops the markets have to go before they settle down and get back to doing what they’re so good at long term…

Going up.

Yet you don’t have to be a day trader or throw your money into highly speculative stock opportunities to take advantage right now.

There are plenty of safe, solid, profitable investments out there to find if you only know where to look. And while real estate investment trusts are hardly the only category to dig through, they’re a great place to start.

I’ll Match Those REITs and Raise You a Dividend Growth Factor

You could write a whole book about all the reasons to appreciate REITs. (In fact, I have.)

But here’s a quick summary:

1. REITs are unique in that they pay out at least 90% of taxable income in the form of dividends to investors that can be quite sizable (and most payout 100% of taxable income). Thanks to their legally recognized structure, it’s in their best interest to be that generous. Which makes it in your best interest to pay attention.
2. Compared to traditional equities, REITs pay out more than two times the distribution that ordinary stocks offer. It only makes sense then that they’re much more likely to fall into the “dependable income” category of so many savvy investors’ portfolios.

With that said, keep in mind that there’s more to income investing than just the yield figure. You also want that yield figure to increase as time goes on, preferably on an annual basis.

That way, your portfolio is making marked progress upward without resorting to cheap tricks and dangerous thrills. After all, a company’s ability to regularly raise its dividend is a good indication of an underlying strength in its corporate earnings and growth prospects.

When you find a stock – any kind of stock – that offers steady, reliable dividend growth, it’s worth a closer look. No matter how boring it might seem at first glance, it’s that kind of asset that can end up paying for your comfortable or even cushy retirement.

It doesn’t matter how dividend growth factors aren’t catchy enough to make the headlines most days. This is the holy grail of investments we’re talking about here.

Don’t be fooled by REITs’ seemingly simple appearance. They might be the exact cup of water you’re looking for in the middle of an otherwise exhausting bloodbath.

Dividend Growth Worth Talking About

When it comes to “boring” investments, REITs really are among the best. Unlike bonds, they can raise their payouts every single year, keeping shareholders above the inflation rate in the process.

This isn’t to say that every single REIT is a good investment at every single time. Hardly. You need to do your due diligence with them the same as with any other money-making opportunity.

That’s why we always screen our dividend-growth stocks as carefully as possible. And that’s why we especially like the five following picks.

Each one of these five real estate investment trusts have grown dividends by at least 5% over the last five years, making them very tempting offerings right now.

And what better time to consider such robust REITs than when there’s blood on the streets like there is right now…

Our Top 5 Dividend-Growing REIT Picks

Here are the bottom-line details you’ll want to know before determining whether these investments are right for you:

Equinix, Inc. (Nasdaq: EQIX): Data Center REIT returned -20.2% in 2018 and analyst forecast AFFO per share of 11% in 2019. S&P rating is BB+ and dividend yield is 2.5%. We maintain a BUY rating.

STORE Capital Corp. (NYSE: STOR): Free-standing Net Lease REIT returned +13.6% in 2018 and analyst forecast AFFO per share of 6% in 2019. S&P rating is BBB and dividend yield is 4.5%. We maintain a BUY rating.

CyrusOne Inc. (Nasdaq: CONE): Data Center REIT returned -8.1% in 2018 and analyst forecast AFFO per share of 8% in 2019. S&P rating is BB+ and dividend yield is 3.5%. We maintain a STRONG BUY rating.

QTS Realty (NYSE: QTS): Data Center REIT returned -28.6% in 2018 and analyst forecast AFFO per share of 10% in 2019. S&P rating is BB- and dividend yield is 4.2%. We maintain a STRONG BUY rating.

Crown Castle International Corp. (NYSE: CCI): Cell Tower REIT returned +1.7% in 2018 and analyst forecast AFFO per share of 7% in 2019. S&P rating is BBB- and dividend yield is 4.2%. We maintain a BUY rating.

I own shares in CCI, QTS, CONE, and STOR.