R
eal estate investment trusts (REITs) can be a dependable source of passive income. Among the most reliable dividend‑paying REITs are Realty Income (O), Mid‑America Apartment Communities (MAA), and NNN REIT (NNN). Each has a long record of steady payouts and a solid strategy for future growth.
**Realty Income – “The Monthly Dividend Company”**
Realty Income has issued 663 consecutive monthly dividends since its IPO in 1994, raising the dividend 132 times and maintaining a 112‑quarter streak of increases. Its current yield is 5.4 %, and the dividend has grown at a 4.2 % compound annual rate over three decades. The REIT owns a diversified portfolio of retail, industrial, gaming, and other commercial properties, all leased under long‑term triple‑net (NNN) agreements. Tenants cover taxes, insurance, and maintenance, giving Realty Income a highly predictable cash flow. About 75 % of that cash is returned to shareholders, while the rest is reinvested in new properties. With a strong balance sheet, the company plans to spend $5 billion on acquisitions this year, tapping into a $14 trillion U.S. and European NNN market.
**Mid‑America Apartment Communities – Residential Stability**
Mid‑America has never cut or suspended its dividend in more than 30 years as a public company, and it has increased the payout every year for the past 15 years. The current yield is 4.3 %, and the dividend has risen at a 7 % compound annual rate over the last decade—well above the sector average. The REIT owns one of the largest apartment portfolios in the Sun Belt, benefiting from strong population and job growth that keeps occupancy high and rents rising. Mid‑America is actively expanding, investing $942.5 million across eight development projects slated for completion by 2028, and has land for additional projects. Its robust balance sheet allows it to fund development and acquisitions, supporting continued dividend growth.
**NNN REIT – Long‑Term Retail Income**
NNN REIT celebrated its 35th consecutive year of dividend increases last year, a milestone shared by only two other REITs and fewer than 80 public companies. The dividend streak now stands at 36 years. The REIT’s strategy is simple: acquire single‑tenant retail properties—automotive service centers, convenience stores, restaurants—under long‑term NNN leases. This structure delivers stable, predictable cash flow. NNN REIT retains a conservative portion of its cash flow to reinvest in new properties, often through sale‑leaseback transactions that provide capital to growing retailers and create future acquisition opportunities. The dividend currently yields 5.7 % and is expected to continue rising as the portfolio expands.
**Why These REITs Matter**
All three REITs have demonstrated more than three decades of dividend stability and growth. Their diversified, NNN‑based portfolios provide predictable cash flow, while strong balance sheets enable continued expansion. For investors seeking reliable passive income, Realty Income, Mid‑America Apartment Communities, and NNN REIT represent solid buy‑and‑hold options.
Matt DiLallo holds positions in Mid‑America Apartment Communities and Realty Income, and The Motley Fool recommends both REITs.
