The US Federal Reserve raises interest rates when the market is growing too fast and inflation becomes a point of concern, which is what has been happening over the past year. This usually indicates that the economy is nearing its peak. During such times, market indices are often around their all-time highs. You have to be careful and look into stocks that can protect your portfolio.

Here are some interest-rate-proof stocks to help you answer the question of how one can profit from rising interest rates.

1. Johnson & Johnson

Johnson & Johnson may be a safe investment option for these volatile times. The company presently has some solid growth drivers, such as the blood cancer drug Darzalex and the autoimmune disease drugs Stelara and Tremfya. Also, its heavy investment in research and strategic acquisitions suggest future growth.

Moreover, one can rightly call it a dividend king, as it has been paying dividends for the last 59 consecutive years and it currently boasts a handsome dividend of 2.4% while the S&P 500 average is just at 1.32%.

2. Wal-Mart

Wal-Mart is one of the largest omni-channel retailers, and it has been steadily building a fairly large e-commerce business over the globe. The company is aggressively expanding into high-margin businesses like advertising, data monetization, and the e-commerce marketplace.

In the US, the company has grown its sales by 103% over the past two years, and it is expecting to reach $100 billion in worldwide e-commerce sales. The company’s shares have gained a decent 15% in the past year, while the corresponding number for the S&P 500 has been 10%.

3. CVS

CVS is an integrated healthcare platform which has a massive retail footprint and may prove to be a buy during volatile situations. The company has invested heavily into e-commerce, and it boasts having over 35 million unique digital customers who spend 2.5 times more than its other in-store customers.

Over the past year, the stock has risen by 33% and by 21% this year. Additionally, it also provides handsome dividends, recently yielding around 2.36%. Moreover, the stock has recently been seen trading at around 15.45 times, which is below its peers that have been trading at an average of 21.91 times.

4. Apple

Apple is one of the most renowned providers of electronic gadgets, and it has long been among the best performers on the market. The company’s shares have grown 16% this year and 18% in the past year despite the impact of the pandemic.

Also, it has once again stunned the market by achieving 36% and 101% growth in its revenues and earnings, respectively. Apple has been investing heavily in 5G technology, and it still has over a million loyal customers to whom it can sell its 5G enabled smartphones.

5. Berkshire Hathaway

Berkshire Hathaway is one of the largest companies in the world, and its stock is one of the highest-priced stocks in the country. Such a high stock price generally discourages any sort of short-term trading, so the company can always preserve its value despite any volatility in the market.

Additionally, the company has a portfolio of carefully-picked, cyclical businesses that are capable of outperforming the market under any circumstances, thus making it extremely dependable. Moreover, the company saw a decent 33% and 24% growth last year and this year, respectively.

6. Caterpillar

The stock of this company is highly cyclical in nature and can therefore capitalize on any ongoing market booms. Presently, it is still in recovery mode after being affected by the pandemic and US-China trade tensions, and it has been down by 6% in the past six months.

However, given the company’s track record, the stock might bounce back soon, so one may want to look into buying it before it gets costly again. Moreover, the stock is a dividend aristocrat and has been paying out hefty dividends for the last 25 consecutive years.

7. Nike

Nike is one of the most popular footwear and apparel companies around the world, and it has never shied away from exhibiting its innovation and resilience under any circumstance.

Despite weathering the impact of the pandemic, the company’s sales net income has more than doubled compared to the past year. This is due to its digital efforts, which ensure the company can attain uninterrupted growth over the years. Additionally, the company also has a track record of offering decent dividend payouts, and its dividends have increased by more than 250% since 2011.

8. Blackstone

Blackstone is a private equity firm that has bright, long-term prospects, as it can continue to perform well with the Federal Reserve’s support and strong fiscal spending.

The company expects to see considerable promise in the coming times in areas like e-commerce, life sciences, sustainable energy, etc., and is intending to raise $4 billion per month on its real estate products due to the high demand. The company has gained a massive 117% in the past year and 84% year-to-date. It also pays handsome dividends, yielding around 2.61%.

These stocks are highly valued and less risky than many other stocks in the market. However, before investing, one must remember that as the market turns down, portfolios also often shrink with it. Thus, investors must carefully choose stocks that not only capitalize on present gains, but also help preserve those gains as the market starts falling.

More By This Author:

Top 4 Telecom And Data Center REIT Stocks To Buy For 2023
Ultimate Guide On How To Start Investing In Gold And Silver In 2023
Avoid Financial Ruin By Investing In These 10 Surprising Stocks