These Real Estate Dividend Stocks Are Money-Printing Machines
Key Takeaways
In real estate can be very lucrative, and rental perties can generate lots of income for their investors. Real estate investment trusts (REITs) own large and growing rental perty portfolios,...
Article Overview
Quick insights and key information
5 min read
Estimated completion
real estate
Article classification
July 2, 2025
07:17 AM
The Motley Fool
Original publisher
In real estate can be very lucrative, and rental perties can generate lots of income for their investors
Real estate investment trusts (REITs) own large and growing rental perty portfolios, giving them the potential to be money-ing machines
Most REITs pay out the bulk of their income to investors through dividends, making them great ways to collect a lot of passive income from real estate
Here are some REITs that generate billions of dollars in annual cash flow for their investors, allowing them to pay lucrative dividends
Image source: Getty Images
American Tower American Tower (AMT -0. 63%) owns more than 149,000 cell towers around the world and a growing portfolio of U
The REIT leases capacity on this infrastructure to mobile carriers, nology companies, and other tenants under long-term leases
Last year, American Tower booked $10. 1 billion in total revenue, including $9. 9 billion in perty revenue
After expenses, the REIT duced $4. 7 billion in adjusted funds from operations (FFO), a REIT metric that measures free cash flow available to pay dividends
American Tower has a roughly 3% current yield and paid out $3 billion in dividends while $1. 6 billion into capital jects, including building additional cell towers and expanding its data center capacity
Those growth investments helped boost its revenue by 1. 1% last year and its adjusted FFO by 6%
American Tower's growing portfolio and income have enabled it to increase its dividend over the years
Logis logis (PLD 1. 66%) owns 5,900 warehouses across four continents and 20 countries, leased to 6,500 customers
In addition to rental income, the industrial REIT makes money by viding essential services to its customers, such as solar power, warehouse automation, and EV charging
Logis also earns fees by managing several strategic capital funds for private investors
In 2024, the logistics real estate leader generated $8. 2 billion in revenue, including $7. 5 billion in rental and other revenue
Logis duced $4. 4 billion in adjusted FFO, nearly $3. 7 billion of which it paid to holders in dividends
It has a nearly 4% current yield
The REIT used the cash it retained to help fund growth investments
It made $1. 9 billion in acquisitions, stabilized $4. 2 billion of development jects, and started $1. 3 billion of new developments, including some data centers
Logis also had $4 billion of perty sales or contributions to its managed funds
The company's growth investments enable it to pay a rising dividend
Logis has increased its dividend at a 13% compound annual rate over the past five years, faster than the S&P 500's 5% and the REIT sector average of 6%
Realty Income Realty Income (O -0. 07%) owns over 15,600 perties across the U
The diversified REIT, which engages in retail, industrial, gaming, and other perties, leases its perties to many of the world's leading companies under long-term net leases
Last year, Realty Income generated nearly $5. 3 billion in revenue, primarily from collecting rental income
The REIT duced $3. 6 billion in adjusted FFO
It has a roughly 5. 5% current yield and paid out almost $2. 7 billion of that cash to investors in dividends
Realty Income used the cash it retained to invest in additional income-generating real estate
Realty Income's new investments grow its rental income, allowing the REIT to increase its monthly dividend
It has raised its payment 131 times since coming public in 1994
Simon perty Simon perty (SPG 0. 96%) owns 232 shopping, dining, entertainment, and mixed-use destinations across North America, Asia, and Europe, primarily consisting of malls and outlet centers
It also owns interests in two other retail perty companies
In 2024, Simon generated almost $6 billion in revenue, including nearly $5. 4 billion in lease income
The mall owner's current dividend yield exceeds 5%, and it duced a record $4. 9 billion in FFO last year while returning more than $3 billion to investors
Simon uses the cash it retains to invest in new developments and redevelop existing perties
Those jects increase its rental income, which should enable the REIT to continue raising its dividend
It increased its payout by 5% earlier this year
Money-ing REITs These REITs have turned their real estate portfolios into money-ing machines
They generate significant cash flows, the bulk of which they pay out to investors through dividends
The REITs retain enough money to grow their portfolios, which allows them to steadily increase their dividends
That makes them great stocks to buy for those seeking to collect passive income from real estate
Matt DiLallo has positions in American Tower, logis, Realty Income, and Simon perty Group and has the ing options: long January 2026 $170 calls on American Tower and short January 2026 $175 calls on American Tower
The Motley Fool has positions in and recommends American Tower, logis, Realty Income, and Simon perty Group
The Motley Fool recommends the ing options: long January 2026 $180 calls on American Tower, long January 2026 $90 calls on logis, and short January 2026 $185 calls on American Tower
The Motley Fool has a disclosure policy.
Related Articles
More insights from FinancialBooklet