Motley Fool’s three dividend picks if Fed rate hikes continue

Motley Fool

Motley Fool names McDonald’s, Colgate-Palmolive and Walmart as dividend stocks to consider if the Fed raises rates further, citing demand for everyday purchases and payout records. It notes a recent 25-basis-point hike that put the Fed’s target range at 3.75%–4.00%.

McDonald’s raised its quarterly dividend 4% to $1.93 per share, marking 50 consecutive years of increases. In March 2026, Colgate-Palmolive raised its quarterly dividend from $0.52 to $0.53 per share and said it has paid common-stock dividends without interruption since 1895. Walmart’s stated capital-allocation order prioritizes growth investment, then dividends, with share repurchases funded by remaining free cash flow.

Bloomberg reported that McDonald’s is using temporary deals and app promotions as it develops a longer-term U.S. value strategy after sales growth slowed; offers include $2 breakfast sandwiches and free fries with a $1 purchase. Colgate’s second-quarter 2026 net sales rose 4.9%, organic sales rose 2.4%, and base-business earnings per share increased 8%. Walmart said more than 60% of U.S. stores received some freight from automated distribution centers last year, while about half of e-commerce volume flowed through automated facilities.

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