2 Tariff-Proof Retail Stocks to Buy Now

Fast-changing tariffs are a headache for retailers, consumer product companies, and consumers. However, at the end of the day, people will keep shopping. There are simple necessities to buy, and life's niceties are always enticing, regardless of price.

Still, here are two dividend stocks that don't really care all that much about tariffs.

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1. Realty Income is a net lease giant

Realty Income (NYSE: O) generates roughly 80% of its rents from single-tenant retail properties. It uses a net lease approach, meaning its tenants are responsible for most property-level operating costs. With more than 15,500 properties, the risk presented by any one asset is very low. The consistency of the real estate investment trust's (REIT's) business model is highlighted by its 31 consecutive annual dividend increases.

The big story here with regard to tariffs, however, is that they just aren't a big issue. Realty Income's lessees have to deal with the impact of tariffs on the products and services sold by the stores occupying the REIT's buildings. And given that Realty Income doesn't pay for property-level expenses, it is even protected from tariffs that could increase maintenance costs.

With an attractive 4.8% dividend yield, income-focused investors looking to reduce their tariff risk would do well to take a look at Realty Income.

2. Agree Realty offers more growth

The one notable problem with Realty Income is that it is so large that it tends to grow very slowly. For example, over the past 31 years, the dividend has increased at a 4.2% rate, which is only slightly higher than the historical rate of inflation growth. In 2025, the dividend only increased by 2.3%.

Agree Realty (NYSE: ADC) is a smaller, faster-growing net lease REIT alternative. It owns around 2,600 retail properties in the United States, which is large enough to provide adequate diversification. However, it is also small enough that Agree Realty can still grow rapidly.

The dividend has been increased annually for a decade, with an annualized growth rate of 5%. In 2025, the dividend increased roughly 3.5%, which is 50% more than Realty Income's dividend growth. More rapid dividend growth is a trend that is likely to continue. Agree's yield is a more modest 3.8% because of the dividend growth opportunity on offer.

Tariffs could be an opportunity

What's interesting about both Realty Income and Agree is that tariff strains could force their tenants to raise capital. One way to do that is to sell properties to a net lease REIT, meaning this pair of companies could even end up benefiting from tariffs.

Reuben Gregg Brewer has positions in Realty Income. The Motley Fool has positions in and recommends Realty Income. The Motley Fool has a disclosure policy.