Matt DiLallo, The Motley Fool

Sat, Jun 14, 2025, 3:09 PM5 min read

• Prologis has grown its dividend much faster than the S&P 500 and the average REIT.

• Invitation Homes has hiked its payout every year since it went public in 2017.

• NNN REIT has raised its dividend for 35 straight years.

• 10 stocks we like better than Prologis ›

Investing in dividend stocks is a no-brainer strategy. Over the last 50 years, dividend stocks have outperformed nonpayers by more than two to one (9.2% annualized total return, compared to 4.3%, according to data from Ned Davis Research and Hartford Funds). The best returns have come from companies that routinely increase their dividends (10.2% average annual return).

Prologis (NYSE: PLD), Invitation Homes (NYSE: INVH), and NNN REIT (NYSE: NNN) are standout dividend growth stocks. That's one of the many reasons they're no-brainer buys for those with $2,000 to invest right now.

Prologis is one of the world's largest real estate investment trusts (REITs). It owns an irreplaceable portfolio of logistics properties around the world. Its properties are crucial to global trade, as $2.7 trillion of goods flow through its distribution centers each year, representing 2.8% of the world's GDP.

Its strategically located properties are in high demand by retail, e-commerce, and logistics companies. That keeps occupancy high and drives steady rent growth. As a result, Prologis generates very stable and steadily rising rental income.

It uses a portion of that money to pay an attractive and growing dividend. The REIT's payout currently yields 3.7%, more than double the S&P 500's (SNPINDEX: ^GSPC) level of 1.3%. Prologis has grown its dividend at a 13% compound annual rate over the last five years, which is much faster than the S&P 500 (5%) and other REITs (5%).

The company is in a strong position to continue increasing its payout. In addition to rent growth, Prologis has the financial strength to invest heavily in expanding its portfolio. It has a massive land position to support new warehouse developments. It also selectively builds data centers. In addition, the REIT makes accretive acquisitions as opportunities arise.

Invitation Homes is a REIT focused on owning and managing single-family rental homes. It owns or manages over 110,000 rental properties in 16 top housing markets, primarily in the fast-growing Sun Belt region. It focuses on markets benefiting from above-average job and population growth rates. Those factors drive demand for rental housing, keeping occupancy high and rental rates rising.