- - Prediction: These 2 Top Stocks Will Be the Largest REIT Dividend Payers in 2026

Matt DiLallo, The Motley FoolJanuary 27, 2026 at 3:05 AM

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Key Points -

REITs pay out a lot of money in dividends each year.

Prologis and American Tower led the sector in total dividend payments last year.

I expect them to maintain their leads in 2026 by increasing their payments in the coming year.

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Real estate investment trusts (REITs) pay out a lot of money in dividends. According to the Nareit, the industry paid out over $70 billion in dividends in 2024. That number likely rose last year as many of the largest REITs boosted their dividend payments.

I expect REIT dividends to continue rising in 2026. I predict that Prologis (NYSE: PLD) and American Tower (NYSE: AMT) will lead the sector in total dividend payments this year.

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A person in a suit holding out a fan of cash.

Image source: Getty Images.

Lots of momentum for another dividend increase

Prologis is one of the largest REITs, with a market capitalization of nearly $120 billion. It's also a leader in paying dividends. The industrial REIT paid almost $3.9 billion in dividends last year. That was a comfortable level, considering that it generated about $5.6 billion in core funds from operations (FFO).

The industrial REIT currently pays a quarterly dividend of $1.01 per share ($4.04 annualized). Prologis increased its dividend payment by 5% last February to its current level.

I predict that Prologis will deliver another dividend increase in 2026. The REIT is coming off a record year with strong momentum for 2026. It currently expects its core FFO per share will rise from $5.86 last year to a range of $6.05 and $6.25 in 2026, a 3% to 7% increase. Given its comfortable dividend payout ratio, I predict Prologis will increase its dividend by another 5% in 2026. That suggests it should pay out around $4.1 billion in dividends this year.

This towering dividend could head higher in 2026

American Tower is also one of the largest REITs, with a market cap of nearly $84 billion. The infrastructure REIT currently pays $1.70 per share in dividends, or almost $800 million each quarter. That's about $3.2 billion in annual dividend payments, the second-highest total in the sector. It can easily cover that dividend level. American Tower produced $984 million in free cash flow after capital expenditures in the third quarter.

Despite its comfortable coverage level, American Tower's dividend payment has hit a ceiling at its current level in recent years:

AMT Dividend Chart

AMT Dividend data by YCharts

That's due to its focus on retaining some cash to repay debt to strengthen its balance sheet. It wanted to get its leverage ratio down to within its 3.0-5.0 times target range, which it achieved during the third quarter (4.9 times).

With its balance sheet strengthened, I expect American Tower to increase its dividend this year. Its target is to deliver mid-single digit annual dividend growth. That drives my prediction that American Tower will raise its dividend payment by about 5% this year, pushing its total outlay to nearly $3.4 billion.

More dividend income from these top REITs in 2026

Prologis and American Tower were the top two REIT dividend payers last year. I expect them to maintain their lead in 2026 due to their strong financial profiles and ability to continue increasing their dividends. I predict that both will hike their per-share payouts by another 5%, further increasing their total cash payments in the coming year.

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Matt DiLallo has positions in American Tower and Prologis. The Motley Fool has positions in and recommends American Tower and Prologis. The Motley Fool has a disclosure policy.

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Source: “AOL Money”