5 Biggest Stocks that Benefit from Rising Interest Rates

In this article, we will take a look at the 5 biggest stocks that benefit from rising interest rates. If you want to see more stocks in this selection, go to the 12 Biggest Stocks that Benefit from Rising Interest Rates.

5. The Charles Schwab Corporation (NYSE:SCHW)

Number of Hedge Fund Holders: 75

The Charles Schwab Corporation (NYSE:SCHW) is a Westlake, Texas-based financial services corporation renowned for its banking, brokerage, and financial advisory services.

Nearly half of The Charles Schwab Corporation’s (NYSE:SCHW) revenue comes from interest-bearing activities, and the current environment of rising benchmark interest rates will play favorably for the entity. The Charles Schwab Corporation (NYSE:SCHW) has over 33 million brokerage accounts along with 2.2 million corporate retirement plan participants and 1.6 million bank accounts as of 2022. The cash balances in the accounts of the clients generate the majority of the company’s interest-related revenue.

Here’s what Ariel Investments said about The Charles Schwab Corporation (NYSE:SCHW) in its Q3 2022 investor letter:

“Shares of financial services provider The Charles Schwab Corporation (NYSE:SCHW) also traded higher following the delivery of a top and bottom-line earnings beat, an increase in its quarterly dividend and the announcement of a significant stock repurchase program. We believe the company will continue to weather various macro and competitive pressures in a rising rate environment by flexing its scale and customer-centric focus in support of its industry leading cost advantage. We also think the TD Ameritrade acquisition will create incremental value and further enhance SCHW’s marketplace standing and long-term growth trajectory.”