Newletter 63: 2025’s Top 3 REITs for Income and Growth
Forget the 1% savings account — these REITs are paying more than 4%+ dividends, with strong growth. Whether you're building passive income or chasing growth, these names deserve a spot on your radar.
In our previous issue, we covered how REITs offer steady dividends, easy diversification, and low-maintenance investing — plus the key risks like interest rate sensitivity and sector-specific volatility to watch out for.
Now, let’s go deeper.
Not all REITs are created equal. Some are high-yield traps. Others are income powerhouses with steady cash flow and recession-resistant tenants.
What We Looked For:
- Dividend Yield: Consistent income, ideally above 5%.
- Stability: Strong tenants, long leases, and reliable payouts.
- Growth: Both in payouts and stock performance.
We’ve filtered the noise and spotlighted 3 REITs that stand out in 2025 — based on income reliability, performance, and long-term upside.
Disclaimer: This is general information, not financial advice. For decisions tailored to your situation, consult a licensed financial advisor.
🔹 Realty Income (NYSE: O) – “The Monthly Dividend Company”
📌 Overview:
- Founded: 1969
- HQ: San Diego, CA
- Properties: 15,400+ across the U.S., U.K., and Europe
- Tenants: Walmart, FedEx, Walgreens, Dollar General, 7-Eleven
- Focus: Single-tenant, triple-net leased retail and industrial
💸 Financials:
- Yield: ~5.5%
- Dividend Growth: 111 consecutive quarters
- Payout Frequency: Monthly
- Credit Rating: A- (S&P)
🔍 Why It’s a Winner:
- Defensive in downturns
- Portfolio of recession-resistant tenants
- Strong foundation in income-focused strategies
- Tends to bounce back when interest rates ease
🔹 VICI Properties (NYSE: VICI) – “The Casino Landlord King”
📌 Overview:
- Founded: 2017 (spun off from Caesars)
- HQ: New York, NY
- Properties: Caesars Palace, MGM Grand, Venetian, more
- Focus: Triple-net leases with inflation-linked rent bumps
- Notable: Largest landowner on the Las Vegas Strip
💸 Financials:
- Yield: ~5.3%
- Dividend Growth: Steady since IPO
- Payout Ratio: ~65%
🔍 Why It’s a Winner:
- Ultra-long leases (20–40 years) mean predictable cash flow
- Inflation-protected income
- Analyst upgrades and positive momentum
- Low leverage, strong rent collection, and room for acquisition-led growth
🔹 American Healthcare REIT (AHR) – “The New Healthcare Dividend Leader”
📌 Overview:
- Public Since: 2023 (via reverse merger)
- Focus: Medical offices, senior housing, hospitals
- Geography: U.S., U.K., Germany
- Portfolio Value: ~$4.6B
💸 Financials:
- Yield: Estimated 4–6%
- Performance: +147% YTD (as of early August)
🔍 Why It’s a Winner:
- New kid on the block — and crushing it
- Healthcare demand surging with aging demographics
- Strong analyst sentiment and upgraded price targets
- Expense control and smart acquisitions fueling growth
📊 Quick Comparison
| REIT Name | Dividend Yield | Sector | Growth Profile | Key Strengths |
|---|---|---|---|---|
| Realty Income Corporation (O) | ~5.5% | Retail/Industrial | 111 quarters of dividend growth | Monthly payouts, recession resilience |
| VICI Properties Inc. (VICI) | ~5.3% | Gaming/Entertainment | Strong, inflation-hedged leases | Las Vegas dominance, stable income stream |
| American Healthcare REIT (AHR) | ~4–6% (est.) | Healthcare | +147% YTD performance (2025) | Healthcare demand, new public REIT momentum |
🛒 How to Buy Them
- Direct Stocks: Pick them individually through your brokerage.
- REIT ETFs: Want broader exposure? Consider ETFs like Vanguard Real Estate ETF (VNQ) or Schwab U.S. REIT ETF (SCHH) to diversify across the REIT sector.
- Picking the right REIT isn’t just about yield — you need reliable tools to analyze risk and compare returns. Instead of wasting time (and money) testing dozens of apps, here’s a shortcut: a curated hub of the best trading platforms, stock screeners, and financial software for everyday investors. Discover it here
📌 Final Thoughts
These three REITs—Realty Income (O), VICI Properties (VICI), and American Healthcare REIT (AHR)—offer a blend of high dividend yields, sector-specific strengths, and long-term stability or upside potential. Whether you're focused on consistent income, inflation-protected leases, or exposure to healthcare trends, each presents a compelling case in today’s market landscape.
👉 In our next issue, we'll dive into REIT ETFs—a broader, diversified approach to real estate investing that may help reduce individual stock risk while still capturing attractive yield and sector exposure.
Stay sharp, stay spiky — be the hedgehog with a strategy
— Mindy
Founder, Hedgehog Huddle
P/S: The biggest cost in personal finance isn’t bad investments—it’s indecision. These free newsletters help you make smarter money moves without hours of research