Three Dividend Stocks That Can Weather Rising Interest Rates
The Federal Reserve recently raised its benchmark interest rate by 25 basis points to a target range of 3.75% to 4.00%, sparking concerns about the impact on dividend stocks.
However, according to The Motley Fool, there are three dividend stocks that can weather rising interest rates: McDonald's (MCD), Colgate-Palmolive (CL), and Walmart (WMT).
McDonald's is a 'Dividend King' with 50 consecutive years of annual raises, including a recent increase in its quarterly dividend to $1.93 per share. The company's business model is built on repeat use, with customers relying on affordable food options even during economic downturns.
Colgate-Palmolive has also paid uninterrupted dividends since 1895 and has a strong global presence, selling products people use every day, such as toothpaste and soap. Its brands reach over 200 countries, with recent growth led by emerging markets.
Walmart anchors budgets when the cost of money rises, prioritizing its dividend and investing in automation, data, and digital capabilities. The company's framework has maintained a regular dividend while investing heavily in growth initiatives.