5 Big Dividend Stocks That LOVE Higher Interest Rates

Many high-yield dividend payers don’t care about the interest-rate boogeyman – and some actually outperform the market when the Fed lifts rates. Consider this research from index provider MSCI studying 88 years of market history up through July 2015 (emphasis mine): “We found that, when rates were low to begin with, high-dividend stocks outperformed the market by an annualized 2.4 percentage points when rates started to go up. On the other hand, when low rates fell under such conditions, the high-dividend stocks in our study actually lagged the market by an annualized 2.6 percentage points.” Let’s start with a unicorn – an insurer that yields more than 4%...

There aren’t many of them, but Mercury General Corporation (NYSE:MCY) breaks the mold despite being a fairly modestly sized insurance company – a $3.3 billion firm that operates primarily in California with some additional business in 10 more states. Host Hotels & Resorts Inc (NYSE:HST) can raise its rents daily. It’s one of the premiere hotel-related REITs on the market. Apple Hospitality REIT Inc (NYSE:APLE) isn’t quite like Host in that it’s properties aren’t at the super-high end of the luxury spectrum, but its properties are still upscale. New Mountain Finance Corp. (NYSE:NMFC) is a business development company that targets so-called “defensive growth” companies across a wide number of sectors and industries, including consumer services, healthcare, software and education. Invesco Trust for Investment Grade Municipals (NYSE:VGM) invests in 490 high-credit-quality municipal bonds that results in a yield of 5.9% currently.

Source: InvestorPlace

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