Three Stocks to Benefit from a September Rate Cut: Realty Income, Verizon, and Regional Banks

In a potential September rate cut, the Federal Reserve is expected to lower interest rates, benefiting growth stocks, particularly in the technology sector. Three stocks poised to gain from lower rates are Realty Income Corp., Verizon Communications Inc., and other high-yield dividend stocks. Realty Income's diversified asset portfolio and triple-net-lease business model make it a prime example of a stock that could shine in a lower interest rate environment. Verizon's investment in 5G and its safe dividend make it another attractive option.

The Federal Reserve is widely anticipated to lower interest rates in September, which could have a significant impact on various sectors of the economy, particularly growth stocks and high-yield dividend stocks. This potential rate cut comes amidst a backdrop of mixed signals from the central bank regarding the need for further monetary easing.

According to JPMorgan's market strategist Karen Ward, the Federal Reserve may pause interest rate cuts after December to evaluate the impact of President-elect Donald Trump's policies on the economy [1]. Federal Reserve Chairman Jerome Powell has stated that the US economy is strong and there is no rush to cut interest rates, indicating a cautious approach to monetary policy [1]. However, the market currently expects a probability of about 58% for another 25 basis point cut next month [1].

In this environment, certain stocks are poised to benefit from lower interest rates. Realty Income Corp., for instance, could shine in a lower interest rate environment due to its diversified asset portfolio and triple-net-lease business model. Verizon Communications Inc. is another attractive option, given its investment in 5G technology and its safe dividend yield.

Verizon's board has recently raised its quarterly dividend by 1.8%, to 69 cents from 67.75 cents, marking the communications giant's 19th consecutive annual payout increase [2]. This dividend hike, combined with the company's investment in 5G infrastructure, positions Verizon as a strong candidate to benefit from lower interest rates.

The rollout of 5G services by Vodafone Idea in Kolkata is also noteworthy. The Indian telecom operator has partnered with Nokia to deploy advanced infrastructure, including AI-powered Self-Organizing Networks (SON) for automated network optimization [3]. This investment in 5G technology could provide a significant boost to the company's growth prospects and its dividend yield.

In conclusion, the expected September rate cut by the Federal Reserve could have a positive impact on growth stocks and high-yield dividend stocks. Realty Income Corp. and Verizon Communications Inc. are two companies that could particularly benefit from this environment, given their strong business models and investment in cutting-edge technology.

References:
[1] https://www.moomoo.com/news/post/36058622/record-tr4cking-news-august-jobs-report-preview-a-september-cut-is-a-given
[2] https://www.morningstar.com/news/dow-jones/202509055572/verizon-raises-quarterly-dividend-by-18
[3] https://www.rcrwireless.com/20250905/5g/vodafone-idea-5g-7