Best Stocks for Rising Interest Rates

The Federal Reserve has been aggressive in its rate hiking, and there's a chance it's not done yet. Here are eight of the best stocks for rising interest rates.

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After pausing rate hikes at its June meeting, the Federal Reserve in July raised its benchmark interest rate by a quarter percentage point to a target range of 5.25% to 5.5%  – the highest level since early 2001. That has left investors scrambling to scrape up the best stocks for rising interest rates.

And the central bank may not be done lifting rates just yet. The market is currently pricing in a 20% to 30% chance of another 25 basis point rate hike (0.25%) at one of the remaining three Fed meetings scheduled for 2023, according to CME Group.

Plus, regardless of whether it hikes rates again, the central bank intends "to keep policy restrictive" until it's "confident inflation is coming down," Federal Reserve Chair Jerome Powell said at his press conference following the July meeting.

While there is undoubtedly some pain that comes from these aggressive rate hikes, including increased borrowing costs for consumers and businesses, there are some stocks that actually benefit from higher interest rates. Furthermore, there are other investments that appear resilient and reasonably insulated from any rate-related disruptions on Wall Street.

With this in mind, here are eight of the best stocks for rising interest rates. The potential options featured among this list of the best stocks to buy for higher rates offer different ways to sidestep the challenges that come with tighter monetary policy. They can also prepare investors for the prospect of additional increases if and when they occur in the remainder of 2023.


Data is as of July 26. Dividend yields represent the trailing 12-month yield, which is a standard measure for equity funds. 

Jeff Reeves
Contributing Writer,

Jeff Reeves writes about equity markets and exchange-traded funds for Kiplinger. A veteran journalist with extensive capital markets experience, Jeff has written about Wall Street and investing since 2008. His work has appeared in numerous respected finance outlets, including CNBC, the Fox Business Network, the Wall Street Journal digital network, USA Today and CNN Money.