Realty Income Is the Dividend Stock I'd Buy as Cooling Inflation Turns Into a Tailwind
Tuesday's inflation report was good news for one of the market's most rate-sensitive dividend payers.
Overview
Tuesday brought the kind of inflation report investors have been waiting on all year. The Consumer Price Index (CPI) rose 3.5% year over year in June, down sharply from 4.2% in May and below economists' expectations, as gasoline prices posted their biggest monthly drop in years. Core inflation, which excludes food and energy, cooled to 2.6% from 2.9%.
For most stocks, that's background news. For Realty Income (NYSE: O), one of the market's most rate-sensitive dividend stocks, it's closer to the main event. After a year in which hot inflation kept the threat of Federal Reserve rate hikes alive, the pressure on this real estate investment trust (REIT) may finally be easing.
Details
Here's why I'd consider buying the stock now.
Source
Originally published at www.fool.com.