High-Yield Dividend Stocks Worth Holding Long-Term: Three REITs Leading the Way

Why Dividend Yield Stocks Outperform

Research from Ned Davis Research and Hartford Funds reveals that dividend-paying stocks in the S&P 500 have delivered more than double the returns of non-payers over the past five decades. The real winners, however, have been those companies consistently raising their payouts. Among the most reliable dividend growth vehicles are real estate investment trusts (REITs), which are particularly well-suited for investors seeking reliable, long-term passive income streams.

Three Standout Performers in the Dividend Yield Space

Realty Income: The Dividend Aristocrat

Realty Income (NYSE: O) stands as the world’s sixth-largest REIT with an impressive track record. The company owns over 15,000 properties spanning retail, industrial, and gaming sectors across the U.S. and Europe. What distinguishes Realty Income is its disciplined approach to dividend growth—it has raised its payment for an astounding 112 consecutive quarters.

This consistency translates to tangible results. Over the past 30 years, Realty Income has grown its dividend at a 4.2% compound annual rate, contributing to a robust 13.7% compound annual total return for long-term shareholders. The company currently offers a 5.7% dividend yield. Its investment strategy centers on long-term net lease properties, where tenants bear operating costs, creating exceptionally stable cash flows. With an estimated $14 trillion addressable market in global net lease real estate and a fortress balance sheet, Realty Income appears positioned for continued dividend increases.

Extra Space Storage: Aggressive Dividend Growth

Extra Space Storage (NYSE: EXR) represents the self-storage REIT category’s largest player, commanding 15.3% of the entire U.S. market. The company operates or manages nearly 4,200 properties comprising over 322 million square feet of rentable space. Its diversified model—owning 48% directly, holding 11% through joint ventures, and managing 41%—creates multiple revenue streams.

The dividend growth record is particularly compelling: Extra Space Storage has increased its payout by over 110% during the past decade alone. Today, it offers a yield exceeding 6%. The company’s acquisition strategy—including its $15 billion purchase of Life Storage in 2023—provides additional growth catalysts. Over 20 years, Extra Space Storage has delivered over 2,400% in total returns, ranking third among all REITs. Its strong balance sheet and bridge lending platform for developers position it well for sustained dividend growth.

Rexford Industrial Realty: High-Growth Potential

Rexford Industrial Realty (NYSE: REXR) focuses exclusively on the Southern California industrial market, operating 420 properties spanning 51 million square feet. Southern California’s tight supply and robust demand dynamics create compelling economics for property owners. Recent lease signings have averaged 23.9% above prior rates with embedded 3.6% annual rental growth—metrics that fuel dividend expansion.

Over the past five years, Rexford has grown its dividend at an impressive 15% compound annual rate. The current yield stands at 4.2%. With continued investment in redevelopment and strategic acquisitions, coupled with structural tailwinds in the regional industrial market, the company appears well-equipped to maintain its growth trajectory.

Comparing the Dividend Yield Landscape

Each of these three dividend stocks offers distinct advantages. Realty Income prioritizes consistency and diversification with its national and international portfolio. Extra Space Storage emphasizes aggressive growth through strategic acquisitions and operational leverage. Rexford Industrial targets high-growth exposure through a concentrated, specialized market approach.

For investors seeking reliable dividend yield stocks to hold indefinitely, REITs in this caliber have demonstrated the capacity to simultaneously grow earnings and increase shareholder payouts. Their long histories of dividend growth, strong market positions, and fortress-like balance sheets make them compelling candidates for building lifetime passive income portfolios.