Barclays: These Stocks Are Most At Risk From Interest Rate Hikes

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Rupert Hargreaves
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For dividend investors, rising long-term interest rates do represent a risk factor. In a rising interest-rate environment, high-dividend-paying stocks have historically underperformed their lower-yielding and non-dividend-paying counterparts; cash flows out of higher yielding riskier assets in favor of lower-risk assets. The opposite is true when rates are falling or constant. This trend can be seen clearly over the past five or six years. Investors have been chasing yield since 2009, pushing up the prices of the stocks with a higher than average yield that they perceive to be safe. Interest rates: Supporting data Alex Bryan of Morningstar has put together…

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk