Kiplinger

5 Bank Stocks to Buy for a Rising-Rate Environment

The Federal Reserve is widely expected to raise interest rates three times this year. In fact, the CME Group's FedWatch tool even has been projecting a 25%-30% possibility of a fourth hike by the end of 2018. On the face of it, this could spell trouble for many dividend stocks that will have to compete with increasingly generous bond yields for attention. But bank stocks are one area of the market where rate increases would be welcomed with open arms.

Sure, in a small way, this is bad news for financial institutions that will have to pay customers more for their deposits. However, banks tend to pass only about a third of

You're reading a preview, sign up to read more.

More from Kiplinger

Kiplinger3 min read
So, You Want to Start a Foundation? Great!
For some business owners, the American dream is more than the freedom to achieve prosperity. To these entrepreneurs, it is the ability to have a real impact on individuals in meaningful ways. Often, they accomplish these goals by starting some kind o
Kiplinger4 min read
For Every Investment, There Is a Season, So Tend Your Portfolio with Care
When I was a boy, working with my mother in her flower gardens helped shape my appreciation for how the different seasons dictate growth. As the weather changed in Cincinnati -- from brutal winter to beautiful spring to blazing hot summer to lovely
Kiplinger4 min read
Should You Help Your Grandchild Buy a Car?
Does the thought of your grandchild behind the wheel of a potentially lethal weapon send chills up your spine? In my case, it brings tears to my eyes! If your grandchild has started to talk about having their own car or driving yours, it's time to t