Five REITs Set to Dominate Dividend Payouts in 2026: What Investors Should Know

The Growing REIT Dividend Landscape

Real estate investment trusts operate under a unique regulatory requirement: they must distribute at least 90% of their taxable income to shareholders annually. This structural mandate makes REITs inherently attractive for income-focused investors. Market analysis suggests U.S. REITs will collectively distribute $61.5 billion in dividends throughout 2026, representing a 4.9% year-over-year increase. Among the hundreds of REITs available, five companies are positioned to lead this dividend wave.

Prologis: The Industrial Giant Leading Dividend Growth

Standing as one of the sector’s largest by capitalization at approximately $120 billion, Prologis (NYSE: PLD) enters 2026 with expectations of distributing $4.3 billion in dividends. This projection represents roughly a 10% increase from the $3.9 billion paid in 2025. The industrial REIT currently offers a 3.1% dividend yield.

What distinguishes Prologis is its consistent commitment to dividend expansion. Over the past five years, the company has achieved a 13% compound annual growth rate in its payout—significantly outpacing both the broader REIT sector average of 6% and the S&P 500’s dividend growth rate of 5%. This track record of disciplined capital allocation and growth demonstrates why analysts view it as the sector’s top dividend performer for the coming year.

American Tower: Telecommunications Infrastructure with Renewed Momentum

As the leading telecommunications infrastructure provider, American Tower (NYSE: AMT) operates a vast network of cell towers and data centers. The company currently yields 3.9% and is expected to distribute $3.4 billion in dividends during 2026. Its quarterly payout stands at approximately $1.70 per share, translating to roughly $800 million quarterly.

The company’s dividend trajectory offers an interesting case study. After experiencing rapid growth from 2014 through 2023, American Tower adopted a more conservative stance in 2024 and 2025, prioritizing balance sheet strengthening and debt reduction. With financial metrics now stabilized, the company is positioned to resume mid-single-digit dividend increases in 2026, aligning with its long-term strategic targets.

Realty Income: The Monthly Dividend Champion

Realty Income (NYSE: O), operating as a global net lease REIT with properties across nine countries, distinguishes itself through monthly dividend payments. Currently yielding 5.7%, the company is projected to distribute $3 billion in 2026, reflecting a modest single-digit growth trajectory from 2025’s approximately $2.9 billion.

The company’s dividend credibility is unmatched within the sector. Since its 1994 public listing, Realty Income has raised dividends 133 times, maintaining 113 consecutive quarters of increases. This 4.2% compound annual growth rate demonstrates exceptional consistency. With $6 billion in planned investments into new income-generating properties, the foundation for sustained dividend growth remains solid.

Simon Property Group: Retail REIT Rebounding to Strength

Simon Property Group (NYSE: SPG), a leading retail REIT focused on regional malls and outlet centers, carries a 4.8% dividend yield and is expected to pay approximately $2.8 billion in 2026. While this mirrors 2025’s distribution levels, the company executed three separate dividend increases last year (5%, 4.9%, and 4.8% respectively), signaling management confidence.

The narrative here reflects resilience. Following pandemic-driven cuts in 2020, Simon Property has systematically rebuilt and now exceeds pre-pandemic payout levels. With current earnings expectations of $12.60-$12.70 per share in funds from operations against an $8.80 annual dividend, the company maintains considerable headroom for future increases.

Public Storage: The Self-Storage Sector’s Foundation

The world’s largest self-storage operator, Public Storage (NYSE: PSA) offers a 4.6% yield and is anticipated to distribute $2.1 billion in dividends throughout 2026. While this level matches 2025 distributions, the company’s long-term record speaks to its capacity for growth.

Over two decades, Public Storage has expanded dividends at an 8.2% annualized rate. Recent years show more measured pace, though the company delivered a notable 50% increase from $2.00 to $3.00 per share in 2022 and has maintained that level since. With core funds from operations growing (up nearly 3% in Q3) and a conservative payout ratio below 75% of distributable funds, capacity for 2026 increases exists.

The Income Foundation Moving Forward

These five REITs represent the foundation of the dividend-paying real estate sector. Each operates substantial property portfolios generating significant cash flows capable of supporting large and potentially expanding distributions. Their combination of scale, financial discipline, and growth trajectory positions them as core holdings for investors prioritizing sustainable income streams in 2026.