‘Dividend Aristocrats’ vs. Rising Rates

Monday, 1 Jul 2013 | 5:32 PM ET
'Dividend Aristocrats' Amid Rising Rates
Monday, 1 Jul 2013 | 5:06 PM ET
Three names provide the best bets to combat rising interest rates, RBC Wealth Management U.S. CEO John Taft says.

Three names provide the best bets to combat rising interest rates, RBC Wealth Management U.S. CEO John Taft said Monday.

"These are companies like ADP, like Johnson & Johnson, like McDonald's – good business models," he added. "They have a history of increasing dividends 25 years in a row in all three cases."

On CNBC's "Fast Money," Taft said that he considered the names "dividend aristocrats."

Taft also suggested lightening up on another asset class.

(Read More: Apple Stock Now a 'Strong Buy': Analyst)

"We've been advocating to investors that they stay modestly overweight in equities, in stocks and that they stay underweight in fixed income," he said.

"If you're a muni investor, now's the time to get in. if you're an equity investor, here's what we'd suggest: We'd suggest positioning yourself in more high-quality and dividend-growing stocks," Taft added.

Trader disclosure: On July 1, 2013, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders: Pete Najarian is long AAPL; Pete Najarian is long INTC; Pete Najarian is long SBUX; Pete Najarian is long FB; Pete Najarian is long IFE; Pete Najarian is long MRK; Pete Najarian is long BMY; Pete Najarian is long TCK; Enis Taner is long GS; Enis Taner is long ZNGA; Enis Taner is long SPY PUTS; Enis Taner is long FXE PUTS; Enis Taner is long WMT; Enis Taner is long CMI PUT SPREAD; Enis Taner is long UUP; Enis Taner is short SPY; Jon Najarian is long GDX; Jon Najarian is long GLD; Jon Najarian is long BBRY ; Jon Najarian is long GRPN; Jon Najarian is long ZNGA; Jon Najarian is long LEN; Jon Najarian is long XLU; Jon Najarian is long TMO; Jon Najarian is long TIVO; Jon Najarian is long TOLL; Jon Najarian is long WLL; Jon Najarian is long PAAS; Jon Najarian is long MAR; Jon Najarian is short NEM puts; Jon Najarian is short ABX puts; Jon Najarian is short AGQ puts; Tim Seymour is long BAC; Tim Seymour is long SBUX.

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