Are These 3 REIT Dividend Hikes Built to Last for Income Investors?

Dividend increases from REITs are often a key signal investors watch for. Unlike other equities, REITs must distribute most of their taxable income to shareholders so that any increase in payout usually reflects management’s confidence in underlying earnings and cash flow. In a market where income stability matters, especially for retirees and income-oriented portfolios, regularly rising dividends help cushion against inflation and show that a REIT’s business model is delivering.

Recently, three U.S. REITs, Whitestone REIT WSR, W. P. Carey Inc. WPC and Realty Income Corporation O, announced dividend hikes that are attracting attention. What sets these increases apart is that they stem from operational performance improvements and strong cash generation rather than opportunistic accounting moves. The data behind these hikes helps answer whether investors can count on the continuation of these dividends.

Whitestone REIT

Whitestone’s board approved a 5.6% hike in its quarterly dividend to 14.25 cents per share for the first quarter of 2026, up from the prior rate. This increase came as Whitestone underscored its commitment to matching its long-term core FFO growth targets of 5-7% annually. It will be paid on March 30 to shareholders on record as of March 16, 2026. 

Whitestone’s dividend increase looks sustainable because it is grounded in ongoing operational strength rather than one-off gains. The company acquires, owns, operates and develops open-air retail centers in growing markets like Phoenix, Austin, Dallas-Fort Worth, Houston and San Antonio, TX. 

It has delivered a same-store net operating income growth rate of about 5.1% during 2021-2025 and posted 94.2% portfolio occupancy recently, showing strong tenant demand. Whitestone also targets long-term core FFO per share growth of 5-7%, with a 5.5% core FFO CAGR since 2021 and a 5.9% dividend CAGR over the same period, which supports continued dividend coverage and reflects durable cash flow generation.

W. P. Carey

W. P. Carey increased its quarterly dividend to 92 cents per share, equivalent to an annualized rate of $3.68, a 1.1% increase from the prior payout and 4.5% compared with the prior year’s level. The increased amount will be paid out on Jan. 15, 2026 to shareholders on record as of Dec. 31, 2025.

W. P. Carey owns a broadly diversified portfolio of about 1,662 net lease properties spanning industrial, warehouse and retail assets across the United States and Europe. These properties are largely mission-critical to tenant operations, supporting consistently high occupancy of 97% as of Sept. 30, 2025. 

The REIT’s diversification by tenant, industry, property type and geography, along with long-term net leases featuring built-in rent escalations, helps deliver stable cash flows and attractive risk-adjusted returns.

Realty Income

Realty Income’s 133rd dividend increase, raising its monthly payout to 27.00 cents per share from 26.95 cents, or about $3.24 annualized, continues its long track record of growing income. The revised payout is applicable to investors on record as of Dec. 31 and payable on Jan. 15, 2026.

What makes this Monthly Dividend Company distinctive is the sheer consistency. It has increased dividends since listing and is included in the S&P 500 Dividend Aristocrats index, backed by more than 30 consecutive years of dividend growth and 113 uninterrupted quarterly hikes, highlighting its resilience through varied market cycles.

Its operating results further support this stability. Moreover, the company’s extensive portfolio of more than 15,500 properties with nearly 99% occupancy and strong rent recapture rates helps maintain rent inflows even across economic cycles. While growth is modest, the long history of increases tied to steady AFFO expansion points to a dividend policy built on recurring operational strength, not financial engineering.

Zacks Rank

Currently, Realty Income and W. P. Carey each carry a Zacks Rank #3 (Hold), while Whitestone has a Zacks Rank of 4 (Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Here’s how their stock prices have behaved over the past three months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research