It is possible to invest in U.S.-based companies that pay dividends of up to 6.5% with 100% certainty that the assets they own are American through and through. How? By focusing on real estate investment trusts (REITs) like Essex Property Trust (ESS -1.42%), Rexford Industrial Realty (REXR 0.46%), and Kilroy Realty (KRC -0.70%). By design, these three REITs are U.S.-based businesses.
Here's what you need to know about each one.
1. Essex Property Trust owns apartments
Essex Property Trust's physical assets are apartment buildings. Its portfolio consists of 256 apartment complexes containing around 62,000 units across three broad markets: Seattle (17% of net operating income), Southern California (40%), and Northern California (43%). That's not just 100% American, that's 100% West Coast.
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For many years, Essex benefited from the growth of the technology sector. The coronavirus pandemic and the work-from-home trend have caused some investors to worry about the business model.
But as more and more companies demand employees come back to the office, it seems likely that the lingering headwinds from the pandemic will eventually be a thing of the past. And, despite the uncertainty, occupancy in Essex's markets remains strong while new apartment construction remains low. In other words, the REIT is well-positioned for continued success.
The dividend yield right now is around 3.5%. It was higher during the pandemic period, but it is still toward the higher side of the stock's 10-year yield range. And the dividend has been increased annually for more than three decades, including during the uncertainty of the pandemic.
2. Rexford Industrial owns industrial assets
Rexford Industrial owns warehouses and light-industrial properties. Unlike the other two REITs here, it is hyper-focused on one single geographic region, Southern California, an important gateway for goods from Asia entering the U.S. The company owns 424 industrial properties containing 54 million square feet of space.
The key benefit of being in this market is its importance to global trade. But there's more to it, because Southern California is supply-constrained. That has resulted in occupancy levels that are generally higher than in other parts of the country.
And with limited options for building new industrial properties, the REIT has material power to increase rents over time. It also has a penchant for buying older properties and upgrading them so rents can be increased.
Right now, however, the world is focused on tariff risks. And Rexford's stock has sold off even though it is a vital way to invest in America. The yield is near the highest levels in the REIT's history at 4.8%, and the dividend has been increased annually for a dozen years and counting.
3. Kilroy Realty owns office buildings
Kilroy Realty specializes in offices, which have been hit even harder by the work-from-home trends than apartments. It owns 123 offices containing around 17 million square feet of space.
The buildings are spread across three states: California, Washington, and Texas. The move into Texas is recent, as Kilroy has basically followed its technology tenants into the state. The company has also been increasingly focusing on life sciences properties, which are more specialized than traditional office assets.
Working from home has been a particular issue for Kilroy, with occupancy in the office sector falling dramatically. Its occupancy is in the low 80% range, which might worry some investors. That said, the REIT's leasing activity has been picking up, and while it isn't back to pre-pandemic levels, it is inching back that way, which suggests that the worst of the downturn is behind it.
The REIT offers a lofty 6.5% dividend yield. That's a sign of the concern that investors have about offices and Kilroy's ability to maintain its dividend.
It cut its dividend during the Great Recession and hasn't increased it since June 2022. So there is reason for concern, but the funds-from-operations payout ratio was only around 55% or so in the first quarter of 2025. There's some room for adversity here before a cut would likely be in the cards. For more aggressive investors looking for high-yield American stocks, Kilroy could be a strong choice.
Once an American building, always an American building
If you want to buy American, it would be hard to do so more directly than buying buildings that are located in the good old U.S.A. That's what Essex, Rexford, and Kilroy all do, with a particular focus on the West Coast. Each one has a slightly different story, but all are worth a closer look today if you are trying to find U.S.-based dividend stocks to add to your portfolio.
