NNN REIT (NYSE: NNN) recently hit another dividend milestone: The real estate investment trust (REIT) delivered its 35th consecutive annual payout hike. That put it in an elite group. Only two other REITs and fewer than 80 publicly traded companies currently have dividend-hiking streaks of 35 or more years.

The retail REIT's 3% dividend increase pushed its yield closer to 5%, putting it even further above the S&P 500's sub-1.5% average yield. Here's a look at what has helped drive its dividend higher and how likely NNN will be to be able to keep the streak going.

NNN REIT has a simple investment strategy. It focuses on owning single-tenant net lease retail properties. Net leases -- aka, NNN leases (hence its name) -- produce predictable income for the lessor because the tenant covers all operating costs, including routine maintenance, building insurance, and real estate taxes. NNN REIT signs long-term leases (10- to 20-year initial terms) with high-quality national and regional retailers.

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Source Fool.com