5 Dividend Picks Ahead of Rising Interest Rates: Strategist

Stocks advanced Monday as the dollar slid in the wake of a weekend meeting of finance ministers of the Group of 20 nations. How should investors be positioned? Dan Genter, president, CEO and CIO of RNC Genter Capital Management and Sean O’Hara, president of RevenueShares Investor Services shared their best plays.

“Interest rates are going to go up, but it’s going to be very slow and methodical,” Genter told CNBC. “The issue you have where there is a [bond] bubble is the lower quality areas—people have been chasing yields very aggressively and have gone down the food chain and bought lower quality both on the corporate side and the municipal bond side, so those yields have compressed.”

Genter said he favors the dividend-paying stocks(Scroll down for his full picks).

In the meantime, O’Hara warned investors not to jump into crowded areas.

“I see so many people focused on dividends, and [is] a little bit of a concern,” he said. “We weight major indexes by revenue.”

“What we have is an anorexic corporation all across the country—they’ve stripped all the expenses out of these companies and any increase in revenue will go straight to the bottomline,” he said. “So what we’ve seen in the last four recessions is that those companies that have the biggest revenue streams can take things out.”

Genter’s Dividend Picks:

Genuine Parts

Century Link

Taiwan Semiconductor

VF Corp


Scorecard—What They Said:

  • Genter's Previous Appearance on CNBC (Oct. 12, 2010)
  • O'Hara's Previous Appearance on CNBC (May 21, 2010)
  • More Market Intelligence:

CNBC Data Pages:

CNBC Slideshows:


No immediate information was available for Genter or O’Hara.