After the Great Recession, the world got used to abnormally low interest rates. The headlines are filled with concern about rising rates right now, as the Federal Reserve looks to tamp down inflation. But, in reality, the current rate environment is pretty much returning to the pre-Great Recession norm. Still, this transition period could be tough on companies that have relied on low rates to support their revenues and profits.
To be fair, even the best-positioned finance companies are likely to feel some sting from rising rates. However, some companies are better positioned to navigate the headwind, including Realty Income (NYSE: O), Brookfield Asset Management (NYSE: BAM), and T. Rowe Price (NASDAQ: TROW). Here’s why this trio of high-yield stocks could still be worth buying even if rates move higher.
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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.
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 like 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.
