Unlock Passive Income: Why These US Real Estate Titans Keep Raising Payouts

The REIT Advantage in Dividend Growth

Real estate investment trusts (REITs) have proven themselves as wealth-building machines for patient investors. According to Ned Davis Research and Hartford Funds, dividend-paying stocks in the S&P 500 have delivered more than double the returns of non-dividend payers over the past five decades. The real standout winners? Companies that consistently boost their distributions year after year.

The US REIT sector stands out as particularly attractive for income-focused investors. These trusts are required by law to distribute 90% of taxable income to shareholders, creating a powerful incentive for sustainable dividend growth. Among hundreds of available options, three REITs have distinguished themselves through decades of rising payouts and fortress-like balance sheets.

Rexford Industrial Realty: The Southern California Powerhouse

Rexford Industrial Realty (NYSE: REXR) has quietly compounded wealth for long-term holders. Focused exclusively on Southern California’s industrial real estate market, the company operates 420 properties spanning 51 million square feet.

The region’s fundamentals are compelling: strong logistics demand, constrained supply, and persistent rent pressures. This combination means Rexford consistently signs new leases at premium rates. Recent lease renewals averaged 23.9% above prior rates, with embedded annual growth built in at 3.6%. Over the past five years, the company has expanded its dividend at an impressive 15% compound annual rate—among the fastest in the sector.

With a 4.2% current yield and continued portfolio expansion through acquisitions and redevelopment, Rexford appears positioned to sustain this growth trajectory. The company’s fortress balance sheet provides ample dry powder for future investments.

Realty Income: The Monthly Dividend Machine

Realty Income (NYSE: O) operates in a different league when it comes to dividend consistency. The world’s sixth-largest REIT holds over 15,000 retail, industrial, and gaming properties across the US and Europe.

What sets Realty Income apart? A 112-consecutive-quarter streak of dividend increases—more than 28 years of uninterrupted growth. The company achieves this through net-lease structures where tenants absorb all operating costs (maintenance, property taxes, insurance). This insulates Realty Income from expense volatility.

The REIT’s 4.2% annualized dividend growth rate has translated into a 13.7% compound annual total return for shareholders over three decades. With a 5.7% current yield and a $14 trillion addressable market in global net-lease real estate, expansion runway remains substantial.

Extra Space Storage: The Self-Storage Revolution

Extra Space Storage (NYSE: EXR) commands 15.3% of the entire US self-storage market—making it the sector’s undisputed leader. The company operates or manages nearly 4,200 properties totaling over 322 million square feet of rentable space.

Its business model combines owned properties (48% of portfolio), joint venture stakes (11%), and third-party management operations (41%). This diversified approach generates multiple income streams: rental revenue from owned assets, stable management fees from third-party business, and growth from acquiring properties from joint venture partners or funding development projects through its lending platform.

Over the past decade, Extra Space Storage has increased its dividend payout by more than 110%, currently yielding above 6%. The company’s aggressive acquisition strategy—including the $15 billion Life Storage deal in 2023—continues fueling expansion. Over 20 years, the stock has delivered more than 2,400% in total returns, ranking third among all US REITs.

The Dividend Growth Catalyst

All three REITs share a common thread: consistent capital deployment driving both occupancy and rent growth. Extra Space Storage acquires properties and expands through partnerships. Realty Income continuously adds high-quality net-lease properties. Rexford redevelops and repositions Southern California industrial assets.

This virtuous cycle—growth funding dividend increases—remains sustainable because the US commercial real estate market continues evolving. Demographic shifts, supply chain reconfiguration, and e-commerce acceleration support underlying demand.

Building Lifetime Wealth

For investors seeking genuine passive income growth rather than stagnant yields, these three REITs exemplify the power of compounding. Each has demonstrated the ability to raise distributions through full market cycles while maintaining strong balance sheets.

The combination of current yields (4.2% to 6%+), multi-decade dividend growth history, and continued expansion opportunities makes these three among the most compelling US dividend stocks for buy-and-hold portfolios. If your goal is lifetime income generation, REITs like Extra Space Storage, Realty Income, and Rexford Industrial Realty warrant serious consideration.