Matt DiLallo, The Motley Fool

Sat, Jun 21, 2025, 1:03 PM5 min read

• Realty Income has raised its dividend payment 131 times since it went public.

• Invitation Homes has increased its dividend every year since its initial public offering.

• Rexford Industrial Realty has boosted its payout by nearly 250% over the past decade.

• 10 stocks we like better than Realty Income ›

Dividend stocks have historically been wise investments. They've outperformed nondividend payers by more than 2-to-1 over the past 50 years, according to data from Ned Davis Research and Hartford Funds. Companies that grow their dividends have proven to be the smartest investment because they've generated the highest returns (10.2% average). At that rate of return, they can grow a $100 investment into about $15,875 in 50 years.

Realty Income (NYSE: O), Invitation Homes (NYSE: INVH), and Rexford Industrial Realty (NYSE: REXR) are standout dividend growth stocks. The real estate investment trusts (REITs) have high dividend yields and excellent growth track records. With relatively low share prices, they're some of the smartest dividend stocks to buy for those with $100 to invest right now.

Realty Income's share price was recently around $57.50. At that price and its recently raised dividend rate, the diversified REIT yields 5.5%. That's several times higher than the S&P 500 (SNPINDEX: ^GSPC) (less than 1.5%).

Few companies have delivered the level of dividend growth that Realty Income has achieved since coming public in 1994. It has raised its monthly dividend payment an impressive 131 times, including for the last 111 straight quarters (and 30 years in a row). The REIT has grown its payout at a 4.2% compound annual rate. That steadily rising dividend has contributed to its robust total return, which has averaged 13.6% since it went public.

Realty Income should have no trouble continuing to increase its high-yielding dividend. It has a low dividend payout ratio (less than 75% of its stable cash flow) and one of the 10 best balance sheets in the REIT sector. That gives it ample financial flexibility to continue acquiring income-generating real estate. With a $14 trillion total addressable market opportunity across its target property types, it has plenty of room to continue growing.

Invitation Homes' share price was recently below $34. At that price, it has a 3.5% dividend yield at its current payment rate. The REIT has raised its dividend every single year since it went public in 2017, including by 3.6% last year.

The landlord has delivered sector-leading same-store net operating income growth since coming public, due to its focus on single-family rental properties in fast-growing metro areas. It has enhanced its overall growth rate by routinely buying more rental properties.