3 Dividend Stocks Perfect for Gen Z Investors

Key Points

• American Tower owns cell towers and data centers.

• EPR Properties invests in experiential real estate.

• Invitation Homes is a leading owner of single-family rental properties.

• 10 stocks we like better than EPR Properties ›

The Motley Fool's Generational Investing Trends Survey revealed something interesting about what stocks younger investors are buying. Our survey found that Gen Z investors tend to prefer investing in dividend stocks, particularly real estate investment trusts (REITs). Their fondness for dividend-paying real estate stocks was much higher than that of retiring baby boomers.

Here are three perfect REITs for Gen Z investors.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

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American Tower

While 29% of Gen Z investors prefer to invest in real estate, half of that group also indicated a preference for investing in technology. American Tower (NYSE: AMT) sits at the intersection of both sectors. The communications infrastructure REIT owns a global portfolio of more than 150,000 communication sites. It also owns several U.S. data center facilities.

The company's towers serve as the backbone infrastructure to the mobile networks most Gen Zers can't live without. It supports the ability to send texts, post to Instagram, and watch TikToks from almost anywhere. Meanwhile, American Tower's data centers play a vital role in supporting streaming, cloud computing, and AI.

American Tower leases capacity on this infrastructure to mobile carriers, technology companies, and other customers. Those leases provide it with a stream of rental income, which it uses to pay dividends. American Tower's dividend currently yields 3.5%, nearly triple the yield of the S&P 500. With demand for its infrastructure only going to grow in the future, American Tower's dividend payment should continue heading higher in the coming years.

EPR Properties

Younger generations, including Gen Z, tend to prioritize spending their disposable income on experiences over acquiring possessions. They want to travel to interesting places, go out to eat, and enjoy shared experiences.

This trend of seeking memorable experiences supports the demand for experiential real estate, which encompasses places such as eat-and-play venues, fitness and wellness properties, and specialty lodging. These property types are positioned to benefit from Gen Z's spending habits. That makes EPR Properties (NYSE: EPR) an ideal REIT to buy to capitalize on this trend. EPR is a leader in owning experiential real estate, which it leases to leading operating companies. Those leases generate predictable rental income to support the REIT's 6.3%-yielding monthly dividend, making it ideal for those seeking to collect passive income from real estate.

EPR Properties sees a more than $100 billion future opportunity to invest in experiential real estate. It's investing between $200 million and $300 million into new properties this year, including funding the construction of several Andretti Indoor Karting and Pinstack eat-and-play venues. These investments should enable EPR Properties to continue increasing its high-yielding dividend.

Invitation Homes

High interest rates and high home prices are making it nearly impossible for many in Gen Z to buy a home. That's forcing them to rent. As a result, they can't start building home equity.

Invitation Homes (NYSE: INVH) can help investors benefit from the rental trend and build equity in real estate. The REIT is a leading owner and manager of single-family rental properties. The landlord owns or manages over 110,000 homes across 16 major U.S. housing markets. These properties generate rental or management fee income to support its nearly 4%-yielding dividend.

In addition to generating rental income, an investment in Invitation Homes enables anyone to build equity in real estate. That comes via the value increase in the REIT's stock price as it grows its earnings through rent increases and portfolio growth. Invitation Homes routinely buys more homes. For example, it has partnerships with several leading homebuilders on build-to-rent communities, catering to the housing needs of younger generations by enabling more people to live in more spacious single-family homes instead of cramped apartments.

Perfect REITs for the Gen Z investor

American Tower, EPR Properties, and Invitation Homes are investing in real estate that supports the needs of Gen Z. That makes these REITs perfect stocks for Gen Z investors. They should provide a growing stream of passive income in the coming decades, which can help younger investors reach their financial goals.

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Matt DiLallo has positions in American Tower, EPR Properties, and Invitation Homes and has the following options: long January 2026 $170 calls on American Tower and short January 2026 $175 calls on American Tower. The Motley Fool has positions in and recommends American Tower, EPR Properties, and Invitation Homes. The Motley Fool recommends the following options: long January 2026 $180 calls on American Tower and short January 2026 $185 calls on American Tower. The Motley Fool has a disclosure policy.