5 Best Dividend Stocks For Rising Interest Rates

In this article, we discuss 5 best dividend stocks for rising interest rates. If you want to read our detailed analysis of stocks in high-interest rate periods and the performance of dividend stocks, go directly to read 12 Best Dividend Stocks For Rising Interest Rates. 

5. Colgate-Palmolive Company (NYSE:CL)

Number of Hedge Fund Holders: 61
Dividend Yield as of April 4: 2.55%

Colgate-Palmolive Company (NYSE:CL) is an American multinational consumer products company that specializes in household, healthcare, and other personal care products. In March, UBS raised its price target on the stock to $86 and maintained a Buy rating on the shares, highlighting the company’s organic revenue growth over the past few years.

Colgate-Palmolive Company (NYSE:CL) is one of the best dividend stocks on our list as the company has raised its payouts consistently for the past 61 years. The company offers a quarterly dividend of $0.48 per share and has a dividend yield of 2.55%, as of April 4.

At the end of December 2022, 61 hedge funds in Insider Monkey’s database had stakes in Colgate-Palmolive Company (NYSE:CL), compared with 57 in the previous quarter. The consolidated value of these stakes is over $4.46 billion.

Third Point mentioned Colgate-Palmolive Company (NYSE:CL) in its Q4 2022 investor letter. Here is what the firm has to say:

“Colgate-Palmolive Company (NYSE:CL) remains one of the firm’s largest equity positions. The company offers defensive growth at a reasonable valuation, and we continue to see the potential for shares to deliver attractive risk adjusted returns over the next several years.

Fourth Quarter results were disappointing. The company missed on gross margins, guided 2023 well below the Street, and took another large impairment charge on its portfolio of skin care brands. The price action on the day of the print (down 5%) was extreme and perhaps reflective of growing investor frustration that the company has failed to sustainably grow earnings over the past decade.”