These stocks could benefit from interest rate cuts in 2025

The U.S. Federal Reserve began cutting key interest rates in September 2024 after a long series of increases that began in early 2022 to tame rising U.S. inflation. So far, rate cuts have been made at three consecutive meetings. The pace of rate cuts is expected to slow in 2025, but the downward trend is expected to continue.

In an environment of falling interest rates, some stocks may see significant upside. Let's look at two companies that could benefit from this situation, and rates are not the only factor that could lift them in 2025.

Realty Income $O: A monthly dividend company

In a time of falling interest rates, demand for stocks in the real estate sector is increasing. This is because lower short-term rates are typically associated with lower mortgage rates. Shares of Realty Income rose from a low of around $50 to nearly $65 in 2024, but then fell as the yield on the 10-year Treasury note rose to 4.8%.

Still, Realty Income has a lot to offer. The company provides dividends monthly,…