For years, America’s low-interest-rate environment has pushed income hunters out of bonds and into other cash-producing investments – namely, dividend stocks. However, the Federal Reserve has been slowly turning the volume back up on interest rates, and is poised to do so again Wednesday, Dec. 13, at the conclusion of the Federal Open Market Committee meeting.
If the Fed raises rates yet again, as it has telegraphed, it would mark the third increase to the Fed funds rate in 2017, and the fifth since the Federal Reserve started budging two years ago. The central banking system now targets a 1%-1.25% interest-rate level, up from 0%-0.25% as recently as 2015.
As interest rates rise, more income investors may be tempted to flee dividend-paying companies for the perceived safety of higher-yielding bonds. But you don’t have to shift to debt – several dividend stocks should remain plenty competitive.
History has shown companies with a record of consistently raising their dividends can offset much of the negative effect of rising rates. Moreover, certain companies may be able to compound the benefits of an improving economy with their growing payouts. Here are six dividend growth stocks that should withstand the Fed’s continued push on interest rates.
SEE ALSO: 50 Dividend Stocks You Can Count On in 2018
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Date — December 13, 2017 5:00 am
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