The 10-Year Treasury Just Hit a 24-Year High. Here's What History Says That Means for Realty Income.

The 10-year Treasury yield has surged above 5.3%, its highest level since 2002, driven by inflation concerns and deficit spending. While REITs historically gained during rising rate periods, the 2022 pattern is repeating where REIT prices decline as rates rise due to inflation headwinds rather than economic growth. Realty Income's stock is down 20% from highs, creating an attractive valuation opportunity with a 6% dividend yield and trading at just over 12 times free cash flow.