2 Retail Stocks That Can Weather the Tariff Storm

The Trump administration’s introduction of wide-ranging tariffs on most trading partners has sent shockwaves through financial markets, with stocks in a freefall. However, amidst the turmoil, some companies are holding up better than others and may make good buys for investors with a long-term perspective.

Two such companies are Realty Income (NYSE: O) and Dollar General (NYSE: DG). Both have demonstrated resilience in the face of economic uncertainty and may be attractive additions to your portfolio.

Realty Income has grown into one of America’s most successful real estate investment trusts (REITs), with a history of surviving multiple U.S. recessions. The company’s secret to longevity lies in its focus on regular American consumers, rather than boom-and-bust housing markets or big city offices. Its properties are leased to retail and industrial clients serving low-priced nondiscretionary goods, which will likely remain in demand regardless of economic conditions.

Dollar General, on the other hand, has built a business model that thrives in low-cost environments, particularly in rural or inner-city areas where costs are lower. The company’s private-label brands offer significant cost savings for customers, making it an attractive option for those looking to pass savings to consumers.

While both stocks have shown resilience, investors should be cautious due to the uncertainty surrounding Trump’s tariff policy. More risk-averse investors may want to wait for volatility to settle before investing. However, with attractive valuations and strong dividend yields, Realty Income and Dollar General are worth considering for a long-term perspective.

Source: https://finance.yahoo.com/news/stock-market-sell-off-2-110700680.html