Dividend-paying real estate stocks are outperforming as AI fears roil markets. Where to find opportunities

BMO analysts report that dividend-paying real estate stocks, particularly Real Estate Investment Trusts (REITs), are outperforming broader financial markets globally in 2026 as investors seek shelter from volatility caused by widespread AI fears that continue to roil technology and other sectors. The financial institution's research indicates that while many sectors struggle with uncertainty surrounding artificial intelligence's impact on employment and corporate profitability, real estate investments with reliable dividend streams have become increasingly attractive to risk-averse investors. This sector rotation comes as traditional tech stocks face continued pressure amid concerns about AI disruption, creating a flight to quality assets that provide both income and relative stability in turbulent times. BMO's projections suggest that REITs could move even higher as interest rate environments potentially stabilize, making these dividend-paying vehicles more appealing compared to bonds and other fixed-income instruments that have faced challenges in the current economic climate.