7 Steadfast Stocks That Are Unaffected by Interest Rate Changes

Core Viewpoint - The article discusses how certain companies with strong balance sheets are well-positioned to thrive despite rising interest rates, contrasting them with more speculative and debt-laden firms that face existential risks due to these economic conditions [1]. Group 1: Companies with Strong Balance Sheets - Alphabet (GOOGL) has $120 billion in cash and short-term investments against $12 billion in long-term debt, potentially benefiting from higher interest rates through treasury bonds yielding 4%, which could generate about $5 billion annually [2]. - Franco-Nevada Corp. (FNV) has no debt and has seen its stock rise over 600% since 2007, although it faces challenges due to a mine shutdown in Panama. The price of precious metals is increasing, suggesting potential for FNV shares to trend higher [4][5]. - Corteva (CTVA) has virtually no net debt and is trading at around 17 times forward earnings, making it an attractive investment opportunity despite a 25% decline in stock price over the past year [6]. - Ambev (ABEV) operates without debt and offers a greater than 5% dividend yield, trading at 15 times forward earnings, positioning it as a steady stock in a defensive industry [7][8]. - Old Dominion Freight Line (ODFL) has only $60 million in long-term debt and focuses on less-than-truckload services, resulting in a stock price increase of over 900% in the past decade [9]. - EPAM Systems (EPAM) has no debt and a large cash balance, allowing it to adapt to geopolitical changes and continue growth in affordable IT solutions [10][11]. Group 2: Market Dynamics - Tradeweb Markets (TW) has benefited from the shift to online bond trading, experiencing a 28% growth in average daily volume for 2023, including a 43% rise in December trading volumes, making it a resilient stock amid interest rate fluctuations [12][13].