3 Top REIT Dividend Stocks to Buy Right Now With $1,000 for Passive Income

A real estate investment trust (REIT) is a company that owns, operates, or finances income-producing real estate. REITs allow you as an investor to invest in a portfolio of real estate properties without the hassle of directly owning or managing the actual properties.

By law, REITs are required to distribute at least 90% of their taxable income to shareholders as dividends, so these investments can also provide investors with a steady income stream. Not all REITs are created equal. A single REIT can specialize in a specific type of property or diversify across multiple real estate sectors. So, it's important to understand the different types of REITs to align them with your financial goals and risk tolerance.

With that, if you have $1,000 to invest, here are three top REIT dividend stocks to consider putting some or all of that amount into.

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1. Realty Income

Realty Income (NYSE: O) has increased its dividend for over three decades and counting. The company also bears the distinction of paying a dividend monthly rather than quarterly, and just paid its 665th consecutive quarterly dividend.

Realty Income's core business operations are built on a stable and low-overhead business model. The company owns a vast portfolio of thousands of properties across the U.S., the U.K., and continental Europe. Properties are primarily leased under triple-net lease agreements, where the tenant is responsible for nearly all operating expenses. These leases typically have long initial terms ranging anywhere from 10 to 20 years, which ensures a stable, long-term rental income stream from each client.

Realty Income's real estate portfolio is highly diversified across more than 1,500 tenants in dozens of industries, with a focus on businesses that are non-discretionary or have low price points (e.g., pharmacies, grocery stores, gyms). Realty Income engages in sale-leaseback transactions, where it buys properties from companies and then leases them back to them, providing the former owners with capital while securing long-term tenants. It also acquires properties already under development to optimize rent generation.

In Q3, Realty Income surpassed revenue and FFO (funds from operations) estimates, with revenue growing 11% year over year to $1.47 billion and FFO per share of $1.07 (compared to $0.98 in the prior year). The company's portfolio remained strong at 98.7% occupancy. With a yield of close to 5.7%, which is notably higher than the average of 1.2% for an S&P 500 stock, Realty Income could be a great addition to an income investor's portfolio.

2. Prologis

Prologis (NYSE: PLD) is the world's leading logistics real estate company, as it owns or has investments in approximately 1.3 billion square feet of property globally. While its current yield (around 3.2%) may be lower than some other REITs, Prologis has increased its dividend for 12 consecutive years. The company acquires, develops, and manages a large portfolio of logistics properties around the world. The company leases these properties to a diverse customer base, including manufacturers, retailers, and logistics providers, to generate steady rental income from long-term leases.

Prologis also partners with institutional investors to grow its business, holds co-ownership stakes in ventures, and earns various fees from management, leasing, and acquisitions. This massive scale means roughly 3% of the world's GDP flows through its properties each year, which gives it a significant competitive advantage and stable rental income from high-quality customers including Amazon, Home Depot, and FedEx.

In Q3 2025, Prologis beat profit expectations and reported record leasing activity. Core FFO per share rose 4.2% to $1.49, and the company lifted its full-year outlook due to increased leasing and a significant push into data centers. Prologis signed a record 62 million square feet of leases during the quarter, and portfolio occupancy increased to 95.3%. A major highlight was the fact that Prologis secured 5.2 gigawatts of utility-fed power capacity to support the growing data center business.

The global e-commerce market continues to expand, and online retail requires significantly more logistics space than traditional physical retail. Prologis is strategically positioned in key transportation hubs to meet this demand for rapid distribution, while also leveraging its existing land bank and infrastructure to expand into the rapidly growing data center market. There's a lot for long-term dividend investors to like about this business now, and this will likely be a stock you'll be very glad to have bought a decade from now.

3. Welltower

Welltower (NYSE: WELL) is a REIT that specializes in healthcare infrastructure, primarily housing for aging seniors in the U.S., U.K., and Canada. Its yield is about 1.5% at the time of this article. Welltower acquires, develops, and manages properties in the senior housing, post-acute, and medical office sectors. Rather than just being a landlord, the company emphasizes long-term partnerships with healthcare operators and systems so it integrates into that specific healthcare ecosystem.

In January, Welltower launched a new private funds management business to manage third-party capital for investments in healthcare and wellness real estate. This move is a strategic effort to pursue a broader range of investment opportunities. Right now, the company operates across three primary business segments: its senior housing operating (SHO) portfolio, senior housing triple-net leased properties, and outpatient medical properties. However, Welltower just announced plans to exit its outpatient medical business to focus more on senior housing.

The SHO segment includes properties that Welltower owns and operates in partnership with third-party senior living management companies, such as independent living, assisted living, and memory care facilities. Where Welltower leases properties to healthcare operators under long-term triple-net lease agreements, the operator is responsible for all property operating expenses and maintenance costs. Properties in this category often include skilled nursing facilities and rehabilitation centers.

Welltower's normalized FFO per skyrocketed 21% year over year in Q3 to $1.34. Same-store net operating income (SSNOI) rose about 15% year over year, and the SHO portfolio showed a 20% increase. Management also completed $1.9 billion in gross investments during the quarter related to acquisitions, development, and loan funding. The REIT had $11.9 billion in available liquidity as of the end of the quarter.

Rachel Warren has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Home Depot, Prologis, and Realty Income. The Motley Fool recommends FedEx and recommends the following options: long January 2026 $90 calls on Prologis. The Motley Fool has a disclosure policy.