10 Safest Dividend REITs for Retirement

When it comes to retirement, safety and consistency are two of the most important factors to consider when investing. Dividend income can be a super reliable income stream to support you in your retirement days, which makes real estate investment trusts (REITs) an attractive investment.

Since REITs are required to pay 90% or more of taxable income in the form of dividends, they often yield high dividend returns. These 10 stocks are some of the safest dividend REITs out there.

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W.P. Carey (NYSE: WPC) is a diversified REIT that owns and leases various real estate properties, including retail, industrial, office, and self-storage spaces in the United States and Europe.

The company doesn't frequently make the list of top-performing REITs, but it's one of the most reliable REITs, with a long track record of adding value for shareholders and maintaining small but steady growth.

It's raised its dividend every year since its initial public offering (IPO) in 1998 and currently nets a 5% dividend return for investors.

ALSO READ: What Are Dividends and How Do They Work?

National Retail Properties (NYSE: NNN) is a retail REIT specializing in the ownership, operation, and leasing of over 3,200 single-tenant retail properties in the United States.

Its tenants extend across a wide range of industries, including fast-food restaurants, convenience stores, automotive services, RV dealers, entertainment centers, and more. With 32 years of consecutive dividend increases, its 4.5% dividend return is one of the most reliable.

Realty Income (NYSE:O) is arguably one of the safest dividend REITs for retirement, maybe the safest. Not only has it managed to outperform the S&P 500 over the past 27 years, but it also holds the title of Dividend Aristocrat, having 53 years of consistent dividend increases.

The company owns over 11,000 properties -- including retail, residential, and even a casino -- and pays monthly dividends rather than quarterly, increasing its appeal to dividend investors. Today, its dividend return sits at just under 4%.

ALSO READ: 3 Reasons to Buy Dividend Aristocrats for Your Retirement Account

Another notable retail REIT prized for its safe dividend payments is Federal Realty Trust (NYSE: FRT), which specializes in high-end outdoor shopping and retail centers in desirable suburban markets in the United States.

The company has maintained 52 years of dividend increases, making it a coveted Dividend Aristocrat, while boasting a 3.4% return for investors today. It holds an S&P rating of A- and, despite the headwinds in the retail industry, continues to deliver value to shareholders year after year.

American Campus Communities (NYSE: ACC) is a unique residential REIT that owns, develops, and leases student housing on and off college campuses across the country. The pandemic caused short-term headwinds for the company as universities and colleges closed their doors. But college living is back, and the company has a lot of room to grow. Its dividend sits at 3.2% today.

5 Stocks Under $49

Presented by Motley Fool Stock Advisor

We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

UMH Properties (NYSE: UMH) owns and develops mobile home communities, having roughly 24,000 sites for sale or lease in 10 states. Demand for affordable housing has soared over the past two years, boosting UMH share prices and performance notably.

While it's not known for consistent dividend increases, given the growing need for alternative and affordable housing communities like mobile home parks, it's a reliable dividend payment for retirees.

In 2021, the company raised its dividend for the first time in 10 years, putting returns at 3.2% today.

ALSO READ: 1 Amazing Real Estate Investment You're Probably Overlooking

Agree Realty (NYSE: ADC) doesn't make the headlines too often, but it is an incredibly reliable dividend-paying REIT.

Specializing in the ownership and leasing of retail properties with some big-name tenants, Agree Realty made the switch to monthly dividend payouts in 2020. It recently bumped up its monthly payment, the third increase since switching, giving investors a 3.8% return today.

Digital Realty Trust (NYSE: DLR) is currently one of the two remaining data center REITs, making it an appealing buy for investors seeking exposure in the fast-growing data center field.

Recent concerns over the acquisition of a South African data center operator have pushed shares down in the short term. However, its growth opportunities are abundant. Today's dividend return is just above 3%, more than tripling its closest competitor.

ALSO READ: Investing in Data Center REITs

Iron Mountain (NYSE: IRM) is a data storage REIT that holds physical storage files, such as medical records, bank documents, and other important files, for large corporations. However, over the past few years, it's been transitioning its business to become more of a modern-day data center operator.

It's maintained nine years of dividend increases, with its dividend returns sitting at 4.5% today. Its super-low debt ratios, strong management team, and exposure to two very important industries make it a safe bet for dividend investors.

Self-storage has been the top-performing sector within the REIT industry for nearly two decades. Exposure to this low-overhead business model and the reliable, safe dividends that come with it is one of the best moves you can make for retirement.

Life Storage (NYSE: LSI) is one of the up-and-coming self-storage REITs, with ownership and interest in just over 1,000 facilities. It's had a 58% increase in quarterly dividends over the past five years, and its return today is just under 2.5%.

5 Stocks Under $49

Presented by Motley Fool Stock Advisor

We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

Dividends can be an incredible avenue of income in your retirement years. These 10 REITs not only provide higher-than-average returns but also diversification for your portfolio and safety as your money grows.

Liz Brumer-Smith owns Digital Realty Trust. The Motley Fool owns and recommends American Campus Communities, Digital Realty Trust, and Iron Mountain. The Motley Fool recommends Life Storage Inc and UMH Properties. The Motley Fool has a disclosure policy.