Top 3 High-Yield REITs for Dividend Investors: Prologis, Realty Income, and Simon Property Group

Investors interested in high-yield stocks should consider real estate investment trusts (REITs), which are specifically designed to distribute income to shareholders. As the REIT sector evolves, a few leaders have emerged with strong yields and potential for growth. Here are three industry-leading, high-yield REITs to watch: Prologis, Realty Income, and Simon Property Group.

1. Prologis: Attractive Yield at a Discount

While Prologis offers the lowest dividend yield among this group—currently around 3.8%—this yield remains significantly higher than the S&P 500 average and sits near the upper range of Prologis’ historical yields. This makes Prologis particularly appealing, especially given its robust dividend growth rate over the past decade.

Prologis stands as the largest industrial REIT, with a global portfolio of warehouses strategically located near key worldwide distribution hubs. Recent market concerns, such as tariff issues, have weighed on the stock, despite Prologis continuing to perform well operationally. For example, its adjusted funds from operations grew 10% year-over-year in the first quarter of 2025. Additionally, Prologis has achieved an impressive average annual dividend increase of over 10% for the past decade.

For investors willing to look past short-term sentiment and focus on long-term growth, Prologis offers a compelling combination of scale, yield, and consistent dividend increases.

2. Realty Income: Stability and Consistent Payouts

Realty Income is the largest REIT in the net lease space, with a strong reputation for reliability. Its current dividend yield sits at 5.6%, well above both the overall market and the average REIT. Currently, this yield is also at the high end of Realty Income’s range for the last decade, suggesting a potential value opportunity.

The company owns a broad portfolio of single-tenant properties across the U.S. and Europe, with tenants responsible for most operating costs under net leases. Realty Income's primary focus is on retail properties, but its portfolio also spans industrial assets and specialty properties like vineyards and casinos.

Beyond physical assets, Realty Income is expanding into debt investments and asset management for institutional clients. This diversification supports its ongoing growth. With a history of annual dividend increases stretching over 30 years, Realty Income appeals to investors seeking reliable income and steady, if modest, dividend growth.

3. Simon Property Group: High Yields with Cyclical Upside

Simon Property Group specializes in enclosed malls and outlet centers, mainly in the U.S. but with a noteworthy international presence. Its portfolio features premier retail properties that attract both consumers and tenants, resulting in a robust 5.2% dividend yield.

Investors should note that Simon has a track record of reducing its dividend during major economic downturns, such as the COVID-19 pandemic and the Great Recession. However, the company has consistently restored and grown its dividend following previous cuts, as consumer demand for shopping quickly recovers when conditions improve.

Simon’s focus on high-quality, well-located retail centers positions it advantageously as weaker malls shutter, making its properties even more desirable. For those comfortable with some economic cyclicality, Simon Property Group has proven to be a rewarding high-yield choice over time.

Diversified REIT Choices for Different Investors

Each of these three REITs offers unique advantages: Prologis provides growth and a historical value opportunity, Realty Income stands out for reliability and consistent dividends, and Simon Property Group offers high-yield potential with some economic sensitivity. Depending on your investment goals and risk appetite, one or more of these REITs could be a valuable addition to your income-focused portfolio.

This content is for informational purposes only and does not constitute financial advice.