Long-Term Dividend Players in the US Market: Which REITs Deliver Consistent Returns?

Why Dividend Stocks Outperform

The US stock market has a clear winner over the past five decades: dividend-paying stocks. According to Ned Davis Research and Hartford Funds, dividend payers in the S&P 500 have nearly tripled the returns of non-dividend companies. The real performers? Companies that consistently raise their payouts year after year. This is where real estate investment trusts (REITs) enter the conversation—many have mastered the art of steady dividend growth.

Three REITs With Proven Track Records

Realty Income: A 112-Quarter Dividend Streak

When it comes to reliability, Realty Income stands apart. This world’s sixth-largest REIT owns over 15,000 properties across the US and Europe—retail spaces, industrial facilities, gaming venues, and more. What makes it special? A streak of 112 consecutive quarters of dividend increases, with a compound annual growth rate of 4.2% over three decades.

The foundation is simple: long-term net leases mean tenants handle all operating costs. Rentals remain stable, and the company keeps expanding its portfolio. With a current dividend yield above 5.7% and a substantial $14 trillion addressable market in global net lease real estate, there’s room for continued growth. Investors who bought in early have seen compound annual returns of 13.7%.

Extra Space Storage: Self-Storage Dominance

Controlling roughly 15% of the US self-storage market, Extra Space Storage manages or owns nearly 4,200 properties spanning over 322 million square feet. A mix of owned assets (48%), joint ventures (11%), and third-party management (41%) creates diversified income streams.

The company’s expansion strategy—acquiring properties, building joint ventures, and growing its management platform—has fueled impressive dividend growth. Over a decade, Extra Space Storage has increased payouts by more than 110%, delivering a current yield exceeding 6%. The 2023 acquisition of fellow REIT Life Storage for $15 billion exemplifies its acquisition muscle. Twenty-year total returns rank third-best in the REIT sector, exceeding 2,400%.

Rexford Industrial Realty: Southern California’s Growth Engine

Focused entirely on Southern California—one of the world’s largest industrial real estate markets—Rexford Industrial Realty operates 420 properties totaling 51 million square feet. Tight supply and strong demand dynamics keep occupancy high and rents climbing. This year alone, new leases averaged 23.9% above prior rates with 3.6% embedded annual rental growth built in.

Capital deployment through redevelopment and acquisitions has pushed dividend growth to 15% annually over the past five years. With industrial demand showing no signs of slowing and a fortress balance sheet enabling continued expansion, future dividend hikes appear secure.

The REIT Advantage for Long-Term Holders

These three companies illustrate why REITs attract buy-and-hold investors: proven dividend histories, strong market positions, and balanced growth catalysts. Extra Space Storage, Realty Income, and Rexford Industrial Realty each combine income generation with capital appreciation potential—a rare combination in the broader stock market.

For those seeking passive income streams that actually grow over time, the REIT sector—particularly these three players—remains worth serious consideration.