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 offer business models designed to withstand higher-for-longer interest rate environments through strong balance sheets and built-in rent escalators.
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 | FRT Price Prediction) is a shopping center-focused business that owns properties in eight metropolitan markets. The REIT has a dividend yield of approximately 4.04%. Rather than strictly relying on favorable macro environments, FRT’s prime mixed-use assets in high-barrier metropolitan areas continue protecting rental revenue, supporting a track record of increasing dividends for 58 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 approximately 5.23%, Realty Income Corporation (NYSE: O) is one of the top dividend REITs to own. The company has increased its payouts annually for the past 32 years and recently declared its 670th consecutive monthly dividend.
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 around $62, Realty Income reported strong Q1 2026 metrics, including diluted AFFO per share of $1.13. With full-year 2026 AFFO guidance projected at $4.41 to $4.44, the current dividend payout ratio sits at a highly sustainable 74% cushion.
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 approximately 7.29%. Following the completion of the Janus Living IPO in March 2026, in which Healthpeak retains an 81.6% majority stake, the company officially raised its full-year 2026 adjusted FFO guidance to $1.71–$1.75 per share.
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 32 years.
Editor’s Note: This article has been updated to reflect Q1 2026 earnings reports, revised dividend yields, updated guidance metrics including Healthpeak’s Janus Living IPO, and the current higher-for-longer interest rate environment.
Top Gaining Stocks
Top Losing Stocks