Interest rates

5 blue-chip dividend stocks that can thrive as interest rates soar – 24/7 Wall St.

For years, rates have been kept artificially low, and some of the reasons are almost as absurd as how long they’ve been kept low. First came the global financial crisis of 2008. Then the stock market crashed. Then there was the tantrum of 2013, then COVID-19. In the end, those in power did everything humanly possible to keep rates low, and now, with ridiculous, out-of-control spending, we have the highest inflation rates since the early 1980s.

Now the proverbial hens are coming home to roost. The Federal Reserve, which tried to start raising rates in 2018, is now being forced to do so. It’s been widely speculated on Wall Street that the next two rate hikes, in May and June, will be 50 basis points, something the Fed hasn’t done since 2000. So what does that mean? for investors? Problems for some sectors like technology, but other sectors like finance and insurance can survive and exploit rising rates.

We’ve been sifting through our 24/7 Wall Street research database looking for companies with buy-rated stocks that pay reliable dividends and look likely to benefit from rising stock prices. rate. It is important to remember that no single analyst report should be used as the sole basis for any buy or sell decision.

American Express

This stock has been strong and any price backup should be exploited. American Express Co. (NYSE:AXP) provides debit and credit cards and travel-related services worldwide. Its products and services include payment and financing products, network services, accounts payable expense management products and services, and travel and lifestyle services.

The Company’s products and services also include merchant acquiring and processing, service and settlement, point-of-sale marketing and information products and services for merchants, and fraud prevention services. , as well as the design and operation of customer loyalty programs. It sells its products and services to consumers, small and medium businesses and large enterprises through mobile and online applications, third-party vendors and business partners, direct mail, telephone, internal sales teams and direct advertising.

Shareholders receive a return of 1.13%. Morgan Stanley has a price target of $223 on American Express shares. The posted consensus target is $201.41 and the shares traded at $184.30 on Wednesday.

Bank of America

Warren Buffett owns an impressive 1.1 billion shares of Bank of America Corp. (NYSE: BAC), which posted very strong results in the fourth quarter and, like other banks, welcomes interest rate hikes. The company is ubiquitous in the United States, providing various banking and financial products and services to individuals, small and medium-sized businesses, institutional investors, corporations and governments in the United States and abroad. It operates 5,100 banking centers, 16,300 ATMs, call centers, and online and mobile banking platforms.