With the Federal Reserve holding rates at 3.5% to 3.75% and talking about “higher for longer,” income investors are rethinking where dividends might fit in their portfolios. Elevated borrowing costs can pressure some companies and reinforce others, which creates a real opportunity for investors who pay attention. This article walks through three dividend stocks from the screener that appear positively exposed to this rate driven backdrop.

The three dividend stocks discussed next are just a starting sample, and the full screen surfaced 18 more companies with equally compelling stories that are not covered here. To go straight to the broader universe and analyze, compare, and identify your highest conviction dividend ideas, head to the Dividend Stocks screener.

Credicorp (BAP)

Overview: Credicorp is a Peru based financial group that runs traditional banking, microfinance, insurance, pensions, wealth management, and health services across several Latin American markets, offering everything from everyday loans and deposits to brokerage and private pension administration.

Operations: Credicorp generates most of its revenue from its universal banking arm Banco de Crédito del Perú at about PEN 15.1b, with additional contributions from insurance and pensions of around PEN 2.3b, microfinance of about PEN 2.4b, and investment management of roughly PEN 1.1b. Revenue is largely concentrated in Peru, where it is about PEN 14.3b.

Market Cap: US$30.7b

Income focused investors may find Credicorp notable because it combines a sizeable US$30.7b financial services platform with an established dividend and exposure to Latin American banking, insurance, and pensions in one stock. The business has been building out digital services and financial inclusion, which can deepen client relationships and support both fee income and lending. At the same time, a higher for longer global rate environment tends to reward banks with diversified funding and solid profitability, and recent results show strong earnings, healthy margins, and a P/E that is not stretched against peers. The main considerations are meaningful credit risk, an uneven dividend history, and heavy reliance on Peru. For dividend investors, that mix of income characteristics and country risk is a key factor when assessing Credicorp.

Credicorp’s scale, diversified income and focus on digital inclusion suggest a story that many investors may not be pricing in yet. Get the full picture, including how country risk and credit quality fit in, with the analysis report for Credicorp

Build your own Credicorp style dividend and financials shortlist

Credicorp and the other two dividend stocks in this article all came from the same simple screen, and you can set up your own filters around income, balance sheet strength, valuation and risks with our Screener. If you prefer starting with ready made ideas, you can jump straight into our curated Investing Ideas.

Peoples Bancorp (PEBO)

Overview: Peoples Bancorp is a regional financial holding company based in Ohio that offers a full menu of community banking services, from everyday checking and savings to business loans, mortgages, cards, payments, brokerage and insurance for individuals and local businesses across its markets.

Operations: Peoples Bancorp generates about US$435 million in revenue from its Community Banking segment, all from customers in the United States.

Market Cap: US$1.4b

Income investors looking at Peoples Bancorp get a regional bank that combines a 4.1% dividend yield and five years of steady dividend increases with a business that is tightly focused on community banking. The company reports firmer net interest income and margin in a higher-rate environment, while management has kept deposit costs in check and pushed efficiency higher. At the same time, credit costs, reliance on retail CDs, and heavy exposure to secondary Midwest markets keep risk on the table, especially with the Federal Reserve holding rates high. For investors weighing whether that trade off still looks attractive, the key question is how Peoples Bancorp handles funding, credit quality, and growth as higher for longer policy rates work through the regional banking system.

Peoples Bancorp’s firm net interest margin and consistent dividend record could be masking something in the numbers. Get the full context in the Peoples Bancorp financial health report

Peoples Financial Services (PFIS)

Overview: Peoples Financial Services is a community focused bank holding company for Peoples Security Bank and Trust that provides deposit accounts, loans, cash management, and a broad suite of trust, wealth management, and brokerage services to businesses, institutions, and retail customers across Pennsylvania, New Jersey, and New York.

Operations: Peoples Financial Services generates about $191 million in revenue from its core banking services, all from customers in the United States.

Market Cap: $707 million

Peoples Financial Services may appeal to investors looking at regional banks with an income tilt and a strong focus on community relationships. The stock combines a 3.6% dividend yield and a long operating history with what analysts describe as high quality earnings, where revenue growth is steady and earnings growth is quicker, and margins are close to 30%. A P/E that sits near the US banks average and slightly below the wider market points to a stock that is not priced for perfection, according to analysts, even as some forecasts call for earnings growth above the US market. Key considerations include modest returns on equity, a share price that screens above certain fair value estimates, and a board that has seen several new directors, all in a higher for longer rate backdrop that can test any lender’s discipline.

Peoples Financial Services looks like a bank where steady community roots and a 3.6% yield could be masking a bigger story on future earnings. Get the context from the analyst forecasts for Peoples Financial Services

Seeking Fresh Alternatives For Your Income?

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.