Following the surprising election of Donald Trump as the next U.S. president — and the market’s stunning rally in response — it’s looking increasingly likely that the Federal Reserve will begin raising interest rates again starting in December.
And rising rates typically are no friend of dividend stocks.
A post-election Reuters poll found that 85% of economists believe a December rate hike is coming. Yes, any interest rate isn’t going to be in percentage points, but basis points … but nonetheless, any move higher in interest rates is going to put at least a little pressure on dividend stocks as investors move into safer avenues for yield.
This is doubly problematic because the stock market is near (or at, depending on the index) all-time highs. Many dividend stocks have been on quite a run in the past year, investors also will be considering high valuations when deciding whether to bail from these stocks to the safety of bonds.
But not every dividend stock is expensive right now, and not every stock will feel the pinch if Janet Yellen announces higher interest rates in December.
Right now, we’ll look at three dividend stocks that look Fed-proof for a number of reasons, whether it’s relatively cheap valuations or simply playing in an arena where a rate hike won’t spell doom. In no particular order …
Dividend Stocks to Buy No Matter What the Fed Does: General Motors (GM)
The S&P 500 is…
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