Mar. 02, 2026

Steven Cress, Quant Team

SA Quant Strategist

Summary

  • The U.S.-Israel airstrikes are a major catalyst impacting global markets, just hours following sweeping bans on the use of Anthropic’s AI technology.
  • The S&P 500 notched its worst month since March 2025 as war in Iran intensifies, and risk-off sentiment likely dominates amid hotter-than-expected wholesale inflation.
  • January 2026 Core CPI (2.5%) and PPI (2.9%) rose Y/Y; headline CPI cooled to 2.4%, supporting a “soft landing” narrative.
  • In the search for safety and income, Iran’s escalation and January’s inflation shock may prompt investors to buy fallen stocks as they assess new geopolitical risks and signs of companies passing costs onto consumers.
  • Consider three top-rated dividend stocks based on Seeking Alpha’s quant rankings. They offer an average dividend yield FWD of 5.64%, growth and profitability to support their dividends, and A+ EPS Revisions.
  • I am Steven Cress, Head of Quantitative Strategies at Seeking Alpha. I manage the quant ratings and factor grades on stocks and ETFs in Seeking Alpha Premium. I also lead Alpha Picks, which selects the two most attractive stocks to buy each month, and also determines when to sell them.
Graph growing up in Front Of Iran Flag.
mirsad sarajlic/iStock via Getty Images

Trifecta Shaping U.S. Markets: Iran War, AI, Wholesale Inflation

Coordinated U.S.-Israel airstrikes on Iran, the blacklisting of Anthropic’s (ANTHRO) artificial intelligence, and January wholesale inflation have prompted a spike in market volatility.

Last week, economic data showcased hotter-than-expected core wholesale prices, up 0.8%. U.S. Treasuries rallied Friday morning, driving yields lower across the curve, as the 10-year Treasury yield dipped below 4% for the first time since November 28, 2025. Overall, the PPI news sent Wall Street tumbling, with the S&P 500 notching its worst month since March 2025.

S&P 500 Trends toward worst month since March 2025
S&P 500 trends toward worst month since March 2025 (Bloomberg)

Historically, when PPI (2.9%) outpaces CPI (2.4%), it puts S&P 500 margins under pressure, contributing to the volatility we’ve seen in tech, along with AI-driven and credit fears. Companies can only absorb so much price pressure before passing it on to the consumer. Over the last five years, some of the CPI price increases include:

  • Gas Utilities: +46.2%
  • Fuel Oil: +45.8%
  • Transportation: +43%
  • Electricity: +36.8%
  • Gasoline: +36.2%
  • Food away from home: 30.2%
  • Shelter: +28.3%
  • Family Health Insurance: +26.5%
  • Food at home: +25.5%
  • Used Cars: +19.9%
  • New Cars: +19.2%

January’s 3.6% year-over-year increase in wholesale prices likely reinforces that the central bank is unlikely to cut rates soon. This is likely to create opportunities for investors to diversify beyond past tech winners amid a shift away from concentrated large-cap growth stocks.

All Eyes on Iran's Oil & Gas Assets
All Eyes on Iran’s Oil & Gas Assets (Bloomberg)

Then, consider the latest geopolitical shocks from the escalation of war in Iran and risk-off sentiment. The Strait of Hormuz is considered one of the world’s most important oil transit points. Following the U.S.-Israel airstrikes, the likelihood of supply chain and oil disruption has increased, creating a surge in oil prices and potential inflationary and economic growth impacts. The impact on inflation and other macroeconomic drivers boils down to the duration of the conflict: the shorter the duration, the more acute the impact; the longer the duration, the broader the economic impact, which could drive yields lower. For now, it’s likely to have little effect on U.S. monetary policy. So keep calm and carry on. Agar Capital also highlights, “Disciplined patience is prudent amid uncertainty, as the true market impact will emerge after initial volatility subsides,” which is why REITs that offer income and AI infrastructure qualities may offer ways to hedge against macro and geopolitical headwinds.

3 Top Dividend Stocks to Buy Now

Geopolitical headwinds, tariffs, and “sticky” costs of living (food, healthcare, and shelter, to name a few) have created uncertainty for investors. The markets—especially growth and tech stocks—are also sensitive to rates, especially as they pertain to investment in the AI infrastructure race, which impacts companies’ growth and profits. Real Estate Investment Trusts (REITs) are unique opportunities in the AI infrastructure “arms race.” As hyperscalers spend hundreds of billions on AI development, REITs act as the pick-and-shovel landlords and infrastructure providers for the physical hardware required to run these models. REITs aren’t just leasing space; they’re at the center of access for AI infrastructure buildout—opportunities delivering income and a hedge against inflation and some of the latest macro headwinds.

How I Found Top Dividend Stocks

Using the Seeking Alpha stock screener, I filtered for top real estate stocks with Strong Buy Quant Ratings and solid forward earnings growth estimates and profitability. Seeking Alpha Quant Ratings are generated by a proprietary model that analyzes over 100 metrics for each stock relative to sector peers and grades them across five factors: Growth, Value, Profitability, Earnings Revisions, and Momentum.

1. Getty Realty Corp. (GTY)

  • Market Capitalization: $1.96B
  • Quant Rating: Strong Buy
  • Sector: Real Estate
  • Industry: Retail REITs
  • Quant Sector Ranking (as of 3/2/2026): 8 out of 170
  • Quant Industry Ranking (as of 3/2/2026): 1 out of 24

One of my top REITs for 2025 and one of the largest owners of freestanding convenience and automotive retail properties, Getty Realty, offers an attractive opportunity for long-term dividend investors. With over 1,174 properties, 27 consecutive years of dividend payments, and 13 consecutive years of dividend growth, the net-lease REIT specializes in acquiring automotive and single-tenant real estate.

GTY Stock Consistency Grade
GTY Stock Consistency Grade (Seeking Alpha)

Getty’s 5.91% forward dividend yield is driven by earnings growth and a stable business model that relies heavily on traditional gas stations and recession-resilient services like collision centers, express tunnel car washes, oil changes, and tire shops, which offer steady cash flow and consistent growth.

GTY Stock Q4 2025 Financial Highlights
GTY Stock Q4 2025 Financial Highlights (GETTY Q4 2025 Investor Presentation)

Interest rate cuts can benefit the company’s model long-term by freeing up capital. The company finished 2025 strong and well-positioned for 2026. As highlighted in its Q4 2025 earnings, GTY’s 2025 Fiscal Year AFFO earnings were up 8.1% to $141.M. The company showcases a strong balance sheet, 99.7% occupancy, and nearly 100% YTD rent collections. Getty is highly profitable, as showcased by its A- Profitability Grade.

GTY Stock Quant Ratings & Factor Grades
GTY Stock Quant Ratings & Factor Grades (Seeking Alpha)

The company’s annual rent increased by nearly 12% in 2025, while AFFO per share was up 5% for Q4 and 3.8% for the full year at the high end of their guidance. While GTY trades at an attractive valuation, the company also maintains bullish momentum to outperform the sector median quarterly over the past year. REITs perform well in lower-rate environments due to cheaper debt costs and more attractive yields relative to bonds, helping boost demand and share prices. As such, my next stock is a diversified REIT.