Realty Income’s cost of capital sets it apart from the pack
Realty Income is built from the ground up to be boring. It is the largest net-lease real estate investment trust, which means its tenants are responsible for most property-level operating costs. That reduces costs and protects the REIT from rising costs. But the real story here is about scale and financial strength.
Realty Income has an investment-grade-rated balance sheet. Its portfolio contains over 15,500 properties. And it has a market cap of roughly $55 billion. Its cost of capital will rise as interest rates rise, but the property market will eventually adjust, helping to maintain Realty Income’s profitability. That said, the REIT has advantaged access to capital markets due to its size and financial strength, which allows it to maintain a lower cost of capital than many of its peers. This advantage exists regardless of the interest rate environment.
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NYSE: O
Realty Income
Premium Feature
Moneyball Superscore
85/100
Today’s Change
(-0.95%) $-0.56
Current Price
$58.71
Key Data Points
Market Cap
$56BMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.
Day’s Range
$58.52 – $59.41
52wk Range
$55.86 – $67.94
Volume
7M
Avg Vol
5.6M
Gross Margin
50.82%
Dividend Yield
5.47%
With a yield of 5.4% and a dividend that has been increased for 31 consecutive years, there’s no reason to worry that Realty Income’s dividend is at risk today.
Asset managers Brookfield and T. Rowe Price live on fees
The next two companies are similar in some ways and different in others. Brookfield Asset Management and T. Rowe Price are both asset managers, collecting fees from the customers who trust them to invest on their behalf. Customers tend to be sticky, and the fees they charge don’t change with interest rates. Brookfield Asset Management had over $1 trillion in assets under management at the end of the second quarter of 2026. T. Rowe Price had $1.9 trillion.
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NYSE: BAM
Brookfield Asset Management
Premium Feature
Moneyball Superscore
82/100
Today’s Change
(-1.69%) $-0.79
Current Price
$45.84
Key Data Points
Market Cap
$76BMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.
Day’s Range
$45.76 – $46.71
52wk Range
$42.20 – $62.57
Volume
2.7M
Avg Vol
2.6M
Gross Margin
94.81%
Dividend Yield
4.17%
One of the biggest differences between these two financial businesses is their target markets. Brookfield Asset Management tends to focus on institutional investors, while T. Rowe Price has a large consumer customer base. If rising rates lead to a bear market, both will ly feel the hit as assets under management decline. But T. Rowe Price has increased its dividend annually for 39 years. And while Brookfield Asset Management’s history as a publicly traded entity is much shorter, the company has been in operation for over 100 years. Both have proven they know how to survive and thrive even when rates are rising.
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NASDAQ: TROW
T. Rowe Price Group
Premium Feature
Moneyball Superscore
61/100
Today’s Change
(-0.26%) $-0.27
Current Price
$104.23
Key Data Points
Market Cap
$23BMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.
Day’s Range
$103.59 – $105.14
52wk Range
$85.22 – $122.00
Volume
2.2M
Avg Vol
1.9M
Gross Margin
79.54%
Dividend Yield
4.86%
Brookfield Asset Management’s dividend yield is currently around 4.2%. T. Rowe Price’s dividend yield is 4.8%. Both are worth a deep dive, even if rates are ly to rise from current levels.
You can’t avoid rising rates, but you can limit the sting
If you are a dividend investor, rising rates will impact your investments. There’s really no way around that fact. However, buying companies Realty Income, Brookfield Asset Management, and T. Rowe Price can provide you with lofty yields that are ly to be well protected from rising rates. If you are using the dividends you collect to pay your bills, you should take a close look at all three of these high-yield stocks today.
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About the Author
Reuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.
Stocks Mentioned
Realty Income
NYSE: O
$58.71
(-0.95%)-$0.56
Motley Fool Stock Advisor’s Latest Pick
—% Avg Return
T. Rowe Price Group
NASDAQ: TROW
$104.23
(-0.26%)-$0.27
Brookfield Asset Management
NYSE: BAM
$45.84
(-1.69%)-$0.79
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Sumber Artikel:
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