The return of interest rates from abnormally low levels to normal levels will indeed put pressure on companies that rely on low rates, but not all high-yield stocks will be harmed as a result. Realty Income (O) can still maintain profitability in a rising-rate environment thanks to its scale, financial strength, and low cost of capital; Brookfield Asset Management (BAM) and T. Rowe Price (TROW), meanwhile, rely on customer stickiness and management fee income, demonstrating resilience across interest rate cycles. For income-focused investors, these three companies are still worth close scrutiny during a period of rising rates.
Realty Income has focused on a “boring” business model since its founding. It is the largest net lease real estate investment trust, with tenants responsible for most property-level operating costs. This both lowers costs and protects the REIT from rising costs. But the real highlight lies in its scale and financial strength.
Realty Income has an investment-grade-rated balance sheet, and its portfolio contains more than 15,500 properties, with a market value of approximately $55 billion. Rising interest rates will push up its cost of capital, but the real estate market will eventually adjust, helping to sustain its profitability. With its scale and financial strength, the REIT enjoys an advantage in the capital markets and can keep its cost of capital below that of many peers. This advantage is independent of the interest rate environment.
Its current dividend yield is 5.4%, and the dividend has increased for 31 consecutive years. There is no reason to worry right now that Realty Income’s dividend is at risk.
The next two companies have both similarities and differences. Brookfield Asset Management and T. Rowe Price are both asset management companies that charge fees to clients who trust them to invest on their behalf. Clients tend to be sticky, and the fees charged do not change with interest rates. As of the end of the second quarter of 2026, Brookfield Asset Management had more than $1 trillion in assets under management, while T. Rowe Price had $1.9 trillion.
One of the biggest differences between these two financial firms lies in their target markets. Brookfield Asset Management tends to focus on institutional investors, while T. Rowe Price has a large individual client base. If rising interest rates lead to a bear market, both could be hurt by a decline in assets under management. But T. Rowe Price has increased its dividend for 39 consecutive years. Brookfield Asset Management has a much shorter history as a public company, but the company has operated for more than 100 years. Both have proven that they know how to survive and thrive when interest rates rise.
Currently, Brookfield Asset Management’s dividend yield is about 4.2%, while T. Rowe Price’s is 4.8%. Even if interest rates may continue to rise from current levels, both are worth deeper study.
