The Big 5 Canadian banks offer great dividends and the stocks look poised for steady long-term growth if interest rates continue to go higher.
This article will discuss:
- why we think interest rates in North America are going higher,
- 5 actionable investment ideas that allow investors to benefit from rising interest rates, and
- why the banks will benefit from rising interest rates
Interest Rates Are Heading Higher
In both Canada and the United States, the trend is clear: interest rates are on their way up after a prolonged period at near-zero benchmark rates.
In July, the Bank of Canada raised its benchmark interest for the first time since 2010. While the bank did not communicate any concrete plans for future rate hikes, it is likely that more are coming.
In the United States, the trend is even more clear.