5 Best Dividend Stocks For Rising Interest Rates

1. 3M Company (NYSE:MMM)

Dividend Yield as of January 19: 4.92%

3M Company (NYSE:MMM) is an American multinational conglomerate company. It sells a wide range of products that belong to different industries which would help the company to stay afloat during interest rate hikes. Moreover, the company generated strong cash in the third quarter of 2022, with an operating cash flow of $1.5 billion and a free cash flow of $1.4 billion. Due to this, it is one of the best dividend stocks for rising interest rates.

3M Company (NYSE:MMM) has been raising its dividend consistently for the past 64 years. The company currently pays a quarterly dividend of $1.49 per share for a dividend yield of 4.92%, as of January 19.

At the end of Q3 2022, 49 hedge funds tracked by Insider Monkey reported owning stakes in 3M Company (NYSE:MMM), down from 54 in the previous quarter. The consolidated value of these stakes is over $1.45 billion.

Mayar Capital mentioned 3M Company (NYSE:MMM) in its Q2 2022 investor letter. Here is what the firm has to say:

“We also bought back into 3M (NYSE:MMM) as the stock reached attractive levels. We’d sold our shares in 3M last year when the price exceeded our estimated fair value, and as better opportunities to invest in presented themselves at the time. Nonetheless, we’ve always liked this business with its diversified revenues, its R&D leadership and its stable margins.

You can also take a look at 12 Best Big Data Stocks To Buy and 13 Cash Rich Penny Stocks That Hedge Funds Are Buying

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