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Rising long-term rates pressure dividend stocks, shifting income investing strategies.

Market News
19 Aug 2026
Seeking Alpha
View Source
Neutral
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Long-term interest rates are rising due to deficits and increased capital demand, creating pressure on dividend-paying stocks like VICI Properties, a high-yield REIT competing with government bonds. Although bonds offer yields close to these stocks, rotating fully into bonds risks losing purchasing power over time because of inflation, especially for long-term investors. The recommended strategy is to selectively invest in high-quality, inflation-protected stocks with strong financial health and low capital expenditure needs, even if these stocks are currently out of favor.

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