Real Estate Dividend Outlook Looks Good for This ETF

Core Viewpoint - The ALPS Active REIT ETF is highlighted as a strong investment option due to its focus on dependable dividend growth within the real estate sector, which is known for above-average dividends [1]. Group 1: Dividend Growth in Real Estate - Real estate dividends are on the rise, with 73 landlords increasing distributions in the previous year, including 11 in December [3]. - Host Hotels & Resorts (HST), part of the REIT portfolio, announced a special dividend of 15 cents per share in December, alongside its unchanged regular dividend of 20 cents per share, resulting in total payouts of 95 cents per share for 2025, a 5.6% increase from the previous year [4]. Group 2: Management Style and Sector Trends - The ALPS ETF is actively managed, allowing for quicker identification of potential dividend offenders and REITs with favorable long-term payout growth prospects [2]. - The ETF's portfolio is tilted towards retail and residential REITs, which together make up 28.51% of the fund, sectors that are currently showing strong dividend increase trends [5]. Group 3: Comparative Dividend Analysis - In 2025, 21 retail REITs declared higher dividends, representing 80.8% of the subsector, while 14 residential REITs increased their dividends, accounting for 70% of that subsector [6]. - A total of 48 US REITs, or 65.8% of the total, recorded higher dividends in 2025 compared to their 2019 payouts, while 20 US REITs, or 27.4%, declared lower dividends compared to pre-pandemic levels [7].