Investing

5 Blue Chip Dividend Stocks That Can Thrive as Interest Rates Storm Higher

Small businesses and individuals having a hard time entering the digital economy are getting a boost from Mastercard as the need to receive funds electronically and make digital and contactless payments has been underscored by the COVID-19 pandemic.

The company has pledged to connect 1 billion people and 50 million small businesses to the digital economy by 2025. This commitment is an extension of its 2015 promise to bring 500 million people who have no ready digital access to financial products into the system. Rising interest rates allow the banks to charge more to those who keep credit card balances.

Mastercard stock investors receive a 0.55% dividend. Morgan Stanley has set a price target of $449, while the consensus target is $431.49. A share price of $354.60 was seen on Wednesday.

Wells Fargo

This large-cap bank is perhaps the best solid value play for 2022, and it is another big money center bank that can benefit from higher net interest income. Wells Fargo & Co. (NYSE: WFC) is a diversified financial services company that provides banking, investment, mortgage and consumer and commercial finance products and services in the United States and internationally.

Its Consumer Banking and Lending segment offers diversified financial products and services for consumers and small businesses. Financial products and services include checking and savings accounts, and credit and debit cards, as well as home, auto, personal and small business lending services.

The Commercial Banking segment provides financial solutions to private, family-owned and certain public companies. Its products and services include banking and credit products across various industry sectors and municipalities, secured lending and lease products and treasury management services.

The Corporate and Investment Banking segment offers a suite of capital markets, banking and financial products and services to corporate, commercial real estate, government and institutional clients. Products and services include corporate banking, investment banking, treasury management, commercial real estate lending and servicing, equity and fixed income solutions, as well as sales, trading and research capabilities services.

The Wealth and Investment Management segment provides personalized wealth management, brokerage, financial planning, lending, private banking and trust and fiduciary products and services to affluent, high-net worth and ultra-high-net worth clients.

Shareholders receive a 2.10% dividend. The price target for Wells Fargo stock at Raymond James is $65. That compares with a $62.39 consensus target and a recent share price of $47.80.


Money center banks, credit card providers and insurance companies as a whole are helped by rising interest rates. Plus, all these outstanding companies are top ideas in their respective sectors and pay very solid and dependable dividends to shareholders. Investors should take advantage of the current dislocation in the markets to scale in positions.

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