Real estate dividend stocks are great options for investors seeking to collect passive income. Commercial real estate tends to generate recurring rental income, enabling companies focused on owning real estate to pay attractive dividends.
Here's a closer look at some of the best dividend-paying stocks in the commercial real estate sector.
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Top real estate dividend stocks
Most companies focused on owning income-producing commercial properties utilize a real estate investment trust (REIT) structure. REITs must pay dividends to maintain their tax advantages, so many of the top real estate dividend stocks are REITs.
Here's a look at some of the top real estate dividend stocks:
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Realty Income (NYSE:O) | $54.9 billion | 5.34% | Retail REITs |
| Essex Property Trust (NYSE:ESS) | $16.9 billion | 3.88% | Residential REITs |
| Federal Realty Investment Trust (NYSE:FRT) | $8.6 billion | 4.42% | Retail REITs |
| NNN REIT (NYSE:NNN) | $8.0 billion | 5.55% | Retail REITs |
| Vici Properties (NYSE:VICI) | $33.3 billion | 5.60% | Specialized REITs |
Data as of Oct 22, 2025.
1. NNN REIT
NYSE: NNN
NNN REIT
Today's Change
(0.21%) $0.09
Current Price
$42.25
Key Data Points
Market Cap
$8B
Day's Range
$41.92 - $42.37
52wk Range
$35.80 - $48.90
Volume
1.2M
Avg Vol
1.3M
Gross Margin
66.90%
Dividend Yield
0.06%
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2. Federal Realty Investment Trust
NYSE: FRT
Federal Realty Investment Trust
Today's Change
(0.74%) $0.74
Current Price
$101.00
Key Data Points
Market Cap
$9B
Day's Range
$99.68 - $101.06
52wk Range
$80.65 - $118.09
Volume
467K
Avg Vol
687K
Gross Margin
38.91%
Dividend Yield
0.04%
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3. Essex Property Trust
NYSE: ESS
Essex Property Trust
Today's Change
(0.85%) $2.24
Current Price
$264.22
Key Data Points
Market Cap
$17B
Day's Range
$261.01 - $265.00
52wk Range
$243.85 - $316.29
Volume
703K
Avg Vol
483K
Gross Margin
36.20%
Dividend Yield
0.04%
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NYSE: VICI
Vici Properties
Today's Change
(0.26%) $0.08
Current Price
$31.27
Key Data Points
Market Cap
$33B
Day's Range
$31.20 - $31.52
52wk Range
$27.98 - $34.03
Volume
12M
Avg Vol
7.9M
Gross Margin
99.23%
Dividend Yield
0.06%
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NYSE: O
Realty Income
Today's Change
(0.34%) $0.20
Current Price
$60.23
Key Data Points
Market Cap
$55B
Day's Range
$59.86 - $60.53
52wk Range
$50.71 - $64.68
Volume
152K
Avg Vol
5.2M
Gross Margin
47.68%
Dividend Yield
0.05%
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Pros and cons of investing in real estate dividend stocks
Investing in real estate dividend stocks has its share of benefits and drawbacks. Some of the pros of investing in the sector include:
- Passive income: Real estate typically generates stable rental income, providing companies focused on owning commercial real estate with steady cash flow to support attractive dividends. That enables investors to easily make passive income from real estate.
- Growth: Most REITs aim to grow their cash flows through rental increases, development projects, and acquisitions. This growth enables them to increase their dividends and provide price appreciation potential for their investors.
- Inflation hedge: Rental rates tend to rise at a pace that keeps up with inflation. Commercial real estate also tends to grow in value at a rate that can exceed inflation. This provides investors with a hedge against the impacts of inflation.
On the other hand, here are some cons of investing in real estate dividend stocks:
- Sensitive to interest rates: The value of commercial real estate tends to fall when interest rates rise. Higher rates make it more expensive for real estate companies to borrow money, which can impact their ability to grow.
- Growth challenges: Real estate companies can face growth headwinds, such as tenant troubles and declining demand for certain property types (e.g., office space in the suburbs).
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How to invest in real estate dividend stocks
It's easy to add real estate dividend stocks to your portfolio. Here's a step-by-step guide on how to invest in real estate dividend stocks:
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
FAQ
About the Author
Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.
Matt DiLallo has positions in Realty Income and Vici Properties. The Motley Fool has positions in and recommends Realty Income. The Motley Fool recommends Vici Properties. The Motley Fool has a disclosure policy.
