Top 3 REIT Dividend Stocks to Buy Now for Steady Income and Growth

Investing in dividend stocks has proven to be a powerful wealth-building strategy. According to long-term research from Ned Davis Research and Hartford Funds, dividend-paying stocks have delivered an impressive annualized total return of 9.2% over the past 50 years—more than twice the return of non-dividend payers. Companies that consistently increase their dividends have performed even better, averaging a 10.2% annual return.

Three standout real estate investment trusts (REITs)—Prologis (NYSE: PLD), Invitation Homes (NYSE: INVH), and NNN REIT (NYSE: NNN)—are exceptional choices for investors looking to put $2,000 to work in dividend growth stocks today.

Prologis: A Leading Dividend Grower

Prologis is among the largest REITs globally, specializing in high-value logistics properties essential to the global supply chain. Over $2.7 trillion worth of goods passes through its distribution centers each year, accounting for roughly 2.8% of the world's GDP.

The strategic locations of its warehouses attract leading retail, e-commerce, and logistics companies, ensuring consistently high occupancy rates and robust rent growth. This stability translates into reliable, steadily rising rental income.

Prologis offers an attractive dividend yield of 3.7%, well above the S&P 500 average of 1.3%. Over the last five years, it has grown its dividend at a compound annual rate of 13%—outpacing both the S&P 500 and peer REITs, which averaged around 5%.

Strong financials enable Prologis to continue expanding its portfolio through new developments, selective data center projects, and value-enhancing acquisitions—laying the groundwork for ongoing dividend growth.

Invitation Homes: Capitalizing on the Rental Market

Invitation Homes focuses on owning and managing over 110,000 single-family rental homes in 16 of the most vibrant housing markets, particularly in the fast-growing Sun Belt region. These markets benefit from above-average employment and population growth, driving demand for rental housing and supporting high occupancy rates and rising rents.

The company expands its portfolio by acquiring homes via multiple channels, including builder partnerships and joint ventures. Currently, it has over 1,800 new homes under construction, fueling future growth.

Thanks to its rising rental income and expanding asset base, Invitation Homes supports a healthy 3.4% dividend yield. Since going public in 2017, it has increased its dividend every year, with a 3.6% uptick in the most recent year.

NNN REIT: An Elite Dividend Growth Performer

NNN REIT specializes in single-tenant retail properties secured by long-term, triple net leases, which require tenants to pay for maintenance, taxes, and insurance. This structure ensures ultra-stable cash flows, most of which are distributed to shareholders as dividends. NNN REIT currently offers a strong 5.5% dividend yield.

The company boasts a 35-year streak of consecutive dividend increases—an achievement matched by very few REITs or public companies. NNN REIT fuels this growth by acquiring income-generating retail properties, often through sale-leaseback agreements with expanding retailers. This approach provides a steady stream of future acquisition opportunities and ongoing rental income growth.

A Winning Combination for Income and Growth

With dividend yields ranging from 3.4% to 5.5%, Prologis, Invitation Homes, and NNN REIT can collectively generate up to $110 in annual dividend income from a $2,000 investment. Their strong potential for ongoing dividend growth, driven by rent increases and portfolio expansion, makes them compelling choices for investors seeking both income and attractive total returns over the long term.

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