2 Dividend Stocks to Double Up On Right Now
The stock market is having a strong start to the year. Despite a recent cooling-off period, the S 500 is up more than 5%. A big catalyst is the view that interest rates will start falling later this year.
Despite that looming catalyst, shares of many top real estate investment trusts (REITs) have underperformed this year. Realty Income (NYSE: O) and Prologis (NYSE: PLD) are two of the more notable laggards. Now looks like a great time to double up on those top-notch dividend stocks.
Realty Income's stock has fallen more than 5% this year. The primary culprit is the Federal Reserve's continued delay in cutting interest rates as it waits for inflation to fall closer to its targeted level. Rate cuts would benefit the REIT. They would lower its cost of capital by reducing its borrowing costs and likely pushing up its stock price, which would put the REIT in a stronger position to make acquisitions.
Source Fool.com
