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The Home Depot, Inc. (HD), Starbucks Corporation (SBUX): Two Stocks Set to Win From Rising Mortgage Rates

Between international opportunities and three big acquisitions over the past couple of years, management’s target of 10% or greater revenue growth on a sustainable annual basis seems more achievable now than ever before. As households start to see a little more money in their bank accounts, Starbucks Corporation (NASDAQ:SBUX) is one of those creature comforts with a relatively low hurdle in convincing people that they have the money to treat themselves to something that they may not have otherwise.

With the stock at 35 times earnings, the market’s feeling the love for the ‘Bucks today. But this is one of the most recognized and reputable brands in the world with a beautiful recurring revenue stream. Investors can expect the 1.2% yield to grow over time, and I believe the stock will continue its market-beating ways for years to come.

The Foolishly Freddie bottom line

Of course, these aren’t the only stocks that should benefit from rising mortgage rates. But they are two quality companies that are ideal for long-term, Foolish investors looking to become part-owners of businesses that have and will continue to stand the test of time. Make sure to add them to your watchlist today.

The article 2 Stocks Set to Win From Rising Mortgage Rates originally appeared on and is written by Jason Moser.

Jason Moser owns shares of Starbucks. The Motley Fool recommends Home Depot, Lowe’s, and Starbucks. The Motley Fool owns shares of Starbucks.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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