Dividend-Paying Real Estate Stock Symbol Comparison: Which REIT Offers Better Value for Long-Term Investors?

Understanding REITs in Today’s Market

The real estate investment trust sector has demonstrated remarkable resilience following the challenging years of 2022-2023. Through the first three quarters of 2025, retail-focused REITs posted an average return of 6.9%, signaling that investor concerns about physical retail’s viability have largely proven premature. The COVID-19 pandemic sparked fears that e-commerce would hollow out brick-and-mortar stores, while rising interest rates subsequently pressured REIT economics. Yet despite these headwinds, well-managed real estate companies have not only survived—they’ve thrived.

REITs remain particularly attractive for income-focused investors due to their structural requirement to distribute at least 90% of taxable income to shareholders. This tax-advantaged status, combined with professional property management and diversified tenant bases, creates a compelling foundation for building passive income streams.

Two Retail REIT Leaders: Operational Performance and Dividend Track Records

When evaluating real estate stock symbols in the retail sector, two names consistently emerge as top performers: Realty Income Corporation and NNN REIT. Both companies demonstrate impressive operational metrics and long histories of rewarding shareholders.

Realty Income operates a sprawling portfolio exceeding 15,500 properties, with approximately 80% of rental income flowing from retail tenants. The company’s tenant mix includes grocery chains (11% of portfolio), convenience stores (10%), and retailers spanning home improvement and discount categories. Its largest customers—Dollar General, Walgreens, Home Depot, and Walmart—represent the stable, essential-goods retailers that prove resilient during economic cycles.

The company maintained a 98.7% occupancy rate while successfully renewing leases at 3.5% rental rate improvements. Adjusted funds from operations (AFFO), the key cash distribution metric for REITs, grew 2.9% year-over-year to $1.09 per diluted share. Management guidance projects 2025 AFFO between $4.25-$4.27 per share, easily covering the annualized dividend of $3.23 per share. Realty Income’s board has increased dividends every quarter since the company’s 1994 IPO—a 30+ year track record of consistent capital returns. The current dividend yields 5.7%.

NNN REIT, operating roughly 3,700 properties with retail exposure across convenience stores, automotive services, restaurants, and entertainment venues, takes a more focused approach. The company achieved a 97.5% occupancy rate in the third quarter while growing quarterly AFFO per share from $0.84 to $0.86. NNN extended its dividend increase streak to 36 years with its latest August hike of 3.4% to $0.60 per share. With projected 2025 AFFO of $3.41-$3.45 per share, dividend coverage appears secure. This real estate stock symbol currently yields 5.9%.

Scale Versus Growth Potential: The Strategic Trade-Off

The fundamental distinction between these dividend-paying REITs centers on their operational profiles and growth dynamics. Realty Income’s massive scale—owning 15,000+ properties—provides exceptional portfolio stability and tenant diversification. However, this same size creates challenges when pursuing meaningful growth. Adding properties that would move the needle materially becomes increasingly difficult when your existing footprint is already enormous.

NNN REIT’s smaller asset base positions it differently. While its focus on U.S. retail properties narrows the scope of diversification, new property acquisitions retain meaningful growth potential. For investors seeking companies with runway to expand earnings per share, this structural advantage merits consideration.

Both companies have successfully navigated the retail environment by targeting tenants offering non-discretionary goods and services—businesses that maintain customer traffic regardless of economic conditions. This deliberate tenant selection has proven far more important than property type in determining relative performance.

Making Your Decision

Choosing between these real estate stock symbols ultimately reflects personal investment objectives. If you prioritize maximum portfolio stability and proven consistency from an established leader, Realty Income offers compelling characteristics. Its size, diversification, and three-decade dividend growth history represent lower-risk income generation.

Conversely, if you believe higher growth potential justifies accepting greater concentration risk, NNN REIT deserves consideration. The smaller real estate stock offers meaningful expansion opportunities while maintaining an equally impressive dividend history and attractive yield.

Both REITs demonstrate that retail real estate remains viable for sophisticated investors who select tenants based on economic resilience rather than sector trends. The concerns that plagued REITs during 2020-2023 have demonstrably faded, creating a favorable environment for dividend appreciation in both companies moving forward.