Higher rates may not threaten these stocks that generate cash and have low debt

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Stocks that have low debt and a track record of strong cash flow are best able to withstand a wave of higher interest rates.

Higher interest rates could add downward pressure to stocks on Wall Street. The benchmark 10-year Treasury yield reached another milestone Thursday, climbing as high as 4.98%, its highest level since 2007. Yields have risen for four days in a row and have added about 40 basis points in October alone. A basis point is 1/100th of a percentage point . The latest uptick has traders eyeing a 10-year yield of 5%, which also has not been reached since 2007.

Customer relations management software company Salesforce has one of the lowest debt-to-equity ratios on the list, at roughly 16%. Salesforce also boasts a free operating cash flow three-year CAGR of roughly 20% and a debt-to-asset ratio of about 10%. Consensus analyst forecasts imply about 24% upside from Wednesday's close a touch below $205. Shares have soared more than 54% since the start of the year. CRM YTD mountain Salesforce stock.

 

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