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ssex Property Trust has increased its dividend for 31 consecutive years, a feat matched by Federal Realty Investment Trust's 58-year streak. Realty Income has raised its dividend for 111 quarters in a row. Investing in real estate can provide passive income through REITs, which own high-quality properties generating rental income.
Three reliable dividend-paying REITs are Essex Property Trust (ESS), Federal Realty Investment Trust (FRT), and Realty Income (O). Their geographical focus has paid off: Essex focuses on the West Coast's growing housing demand, while Federal Realty invests in high-quality retail properties. Realty Income owns stable rental income-generating properties with long-term net leases.
Essex Property Trust's same-property net operating income grew 126% over 20 years, outpacing its peers by 23%. Its core funds from operations (FFO) increased 276%, and the company has raised its dividend at more than double the average pace of its peers. Essex maintains a conservative dividend payout ratio and strong balance sheet, enabling it to continue investing in its growing portfolio.
Federal Realty Investment Trust focuses on quality over quantity, owning high-quality mixed-use properties and open-air shopping centers in first-ring suburbs of strategically selected metro markets. This strategy has paid off, with FFO per share increasing 134% since 2005. The company continues to recycle capital by selling properties with limited growth potential to fund new investments.
Realty Income's mission is to pay dependable monthly dividends that steadily rise. It has increased its payment 131 times since its public market listing in 1994 and raised the dividend for 111 consecutive quarters. Realty Income focuses on investing in properties that produce stable rental income, such as retail, industrial, gaming, and other properties secured by long-term net leases.
These three REITs have delivered decades of dividend increases, making them great stocks to buy for those seeking resilient passive income streams.
