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- Certain areas of the stock market are going to be particularly exposed as the Federal Reserve continues to raise interest rates.
- Goldman Sachs has singled out six high dividend-paying companies built to withstand rate hikes.
No matter how optimistic you may be about the $4, one thing is certain: higher $4 are going to hurt.
$4 will become more appealing relative to stocks, and there will inevitably be some rotation. But not every part of the market will feel it the same, which means there will still be ample opportunity to identify and invest in companies that will be insulated from rate hike pain.
$4 is on the case, and is looking at stocks that pay high dividends. While conventional wisdom suggests these types of companies would get hurt by rising rates - because their cash distributions would be less competitive relative to bonds - Goldman says this isn't necessarily the case.
The firm argues there are attractive trades to be found in high-dividend payers that are also growing their yield at a quick pace. By Goldman's measure, the top 25% of dividend-growers in the $4 have outperformed during past rising-rate environments.
Without further ado, here are the six stocks that best fit the bill:
Get the latest Goldman Sachs stock price$4