These 3 Dividend Stocks Just Raised Their Payouts by Double Digits

The Federal Reserve cut its key interest rate by 25 basis points on Sept. 18, 2025, lowering it to a range of 4.00% to 4.25%. This is its first rate cut since December 2024 and comes as signs show the labor market is slowing down. Although job growth has cooled and inflation remains relatively high, the Fed sees risks to employment rising and wants to support the economy by making borrowing a bit cheaper.

Lower interest rates often help real estate investment trusts (REITs) because they reduce borrowing costs and improve cash flow, which can lead to higher dividends. The S&P 500 Real Estate sector ($SRRE) has gained 2.59% this year, reaching 262.56 as of Sept. 18, benefiting from these conditions.

In this favorable environment, some REITs have responded by raising dividends significantly. CBL Properties (CBL) announced a 12.5% increase to $0.45 per share on Aug. 4, marking a notable boost. EastGroup Properties (EGP) followed with a 10.7% increase to $1.55 per share on Aug. 22, continuing a long track record of steady dividends. Strawberry Fields REIT (STRW) raised its dividend by 14.3% to $0.16 per share for the third quarter of 2025, supported by strong growth in adjusted funds from operations.

With more Fed rate cuts expected, and these REITs well-positioned to benefit from lower financing costs, could they be attractive choices for investors focused on income? Let’s find out.

Strawberry Fields REIT is a healthcare-focused real estate investment trust that owns and manages skilled nursing and assisted living facilities, mainly in Missouri.

The stock has performed well, rising about 17.08% over the past year and 20.30% year-to-date (YTD), showing that investors are confident in the company’s stable income and growth.

Valuation looks attractive, with a forward price-to-earnings (P/E) ratio of 9.76x, much lower than the sector average of 30.51x, suggesting it may be undervalued. The current dividend yield is 4.73%, supported by a payout ratio of a little over 100%, illustrating STRW’s recent strong dividend increase and commitment to rewarding shareholders. It has raised dividends two years in a row and pays quarterly, making it appealing for income-focused investors.

Financially, STRW reported funds from operations of $20 million for the second quarter of 2025, up from $15.2 million the previous year. Adjusted funds from operations also improved to $18.9 million. Rental income grew to $37.9 million thanks to recent acquisitions and rent increases. In the first half of the year, net income rose to $15.7 million from $13 million year-over-year (YoY), showing solid growth.

The company has recently expanded with a $5.3 million purchase of a nursing and assisted living facility in Poplar Bluff, Missouri. A bigger deal involved acquiring nine healthcare facilities for $59 million, increasing annual rents by $6.1 million through long-term leases with annual 3% rent increases.

Analysts maintain a moderately positive view of STRW, with a “moderate buy” consensus and an average price target of $12.78. This suggests a small potential upside of around 0.8% from the current price.

CBL Properties is a real estate investment trust that owns and manages enclosed regional malls mainly located in growing middle-market areas.

Over the past 52 weeks, CBL’s stock has climbed about 24.90%, with a smaller YTD gain of around 7.45%.

The stock’s valuation shows a forward P/E ratio of 33.82x, which is higher than the sector average of 30.51x. This suggests investors expect stronger growth from CBL compared to its peers. At the same time, the trailing price-to-earnings ratio remains low at 4.57.

The company offers a solid dividend yield of 7.88%, supported by a recent 12.5% increase to $0.45 per share for the next quarter. CBL has raised its dividend for three straight years, showing a strong focus on increasing returns for shareholders, even with a payout ratio above 110%.

In the second quarter of 2025, adjusted funds from operations (FFO) per share rose to $1.86 from $1.73 the previous year. Same-center net operating income edged down by 0.5% as some challenges persisted in the retail sector. The first half of the year kept pace, with adjusted FFO hitting $3.37 per share, up from $3.23 a year earlier. Management expects full-year adjusted FFO between $6.98 and $7.34 per share, reflecting sustained earnings despite headwinds.

CBL’s growth is backed by key acquisitions, including the recent $178.9 million purchase of four prominent regional malls, which stretches their reach in critical markets. At the same time, adding new restaurants and retailers to flagship locations like Friendly Center in Greensboro aims to improve the customer experience and increase foot traffic.

CBL stock has no analyst coverage currently.

EastGroup Properties is a real estate investment trust that focuses on developing and managing industrial properties, mainly warehouses and distribution centers, in fast-growing markets across the United States.

EGP stock has had mixed results over the last year, dropping about 11.12% over 52 weeks but recovering with a 4.94% gain so far this year.

Its valuation looks reasonable, with a forward P/E ratio of 18.65x, well below the sector average of 30.51x. EGP offers an annual dividend yield of 3.37%, supported by five years of steady dividend increases. The payout ratio sits above 120%, consistent with the recent double-digit dividend raise and showing confidence in continued cash flow growth.

Financially, EGP reported net income of $1.20 per diluted share for the second quarter of 2025, up slightly from $1.14 the previous year. Funds from operations, a key measure for REITs, rose 7.8% to $2.21 per share. Same-property net operating income increased by about 6.6%, driven in part by a notable 44.4% rise in rental rates on new and renewal leases.

Occupancy stays strong, with the portfolio 97.1% leased and about 96% occupied. The company expects earnings per share in 2025 to range between $4.76 and $4.90, with funds from operations between $8.89 and $9.03, showing positive growth expectations.

On the development side, EGP is moving forward with two projects in Nashville and Atlanta, adding 469,000 square feet at an expected cost of $70 million. It also recently bought two properties in Raleigh totaling 318,000 square feet for around $61 million, clearly showing a commitment to growing its industrial portfolio in key markets.

Analysts generally view EGP positively, with all 19 surveyed giving it a consensus “moderate buy” rating. The average price target of $189 suggests about a 12% upside from the current trading price.

The Fed’s move to cut rates by 25 basis points to 4.00%–4.25% should keep borrowing costs in check, giving REITs room to breathe and support dividend growth. Given the recent double-digit hikes at STRW, CBL, and EGP, investors can reasonably expect these stocks to drift higher as financing becomes cheaper and their payout yields stay attractive. All three remain well-positioned: STRW’s healthcare niche, CBL’s retail reinvestment, and EGP’s industrial expansion point toward steady cash flows and share-price upside. With further rate cuts likely on the horizon, these dividend champions look set to stay in favor with income-seeking portfolios.

On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com