Haverhill Financial Research · Watchlist · October 11, 2026
Why these nine
Interest rates touch every company, but some feel each change directly: banks and brokers through what they earn on loans and cash, homebuilders through mortgage rates, and real estate and utility companies through what they pay to borrow and how their dividends compare with bond yields. The Fed's next decision is due on Wednesday, October 28. What it signals about the path ahead matters as much as the decision itself.
The watchlist
| Company | Yield · P/E | 1-yr move | Haverhill view | Why rates matter here |
|---|---|---|---|---|
USB U.S. Bancorp | Div 3.8% P/E 11.4x | +21% | Hold #91 | Lower rates shrink what it earns on loans before deposit costs fall, but help loan demand and credit |
PNC PNC Financial | Div 3.7% P/E 12.1x | +15% | Not on the list | Same trade-off as U.S. Bancorp: margin pressure against healthier borrowers |
SCHW Charles Schwab | Div 1.3% P/E 17.6x | +3% | Hold #55 | Earns interest on client cash; lower rates trim that income but can lift trading |
HOOD Robinhood | No dividend P/E 48.3x | -28% | Hold Full report | Net interest was 30% of Q2 revenue, so each cut matters |
LEN Lennar | Div 2.6% P/E 14.6x | -36% | Hold #95 | Mortgage rates decide how much it has to spend on incentives |
DHI D.R. Horton | Div 1.3% P/E 12.9x | -16% | Not on the list | The largest US builder; first-time buyers are the most rate-sensitive |
O Realty Income | Div 6.0% P/E 39.6x | -8% | Not on the list | Income stocks compete with bond yields; lower yields tend to lift them |
VICI VICI Properties | Div 8.0% P/E 8.9x | -27% | Not on the list | Long casino leases with rent escalators; a high yield that moves with rates |
NEE NextEra Energy | Div 3.2% P/E 17.4x | -8% | Not on the list | Borrows heavily to build power plants, so funding costs drive returns |
What to listen for
The decision: whether the Fed cuts, holds or raises, and whether any officials dissent.
The guidance: what the statement and the press conference suggest about December and 2027. Markets usually move more on this than on the decision.
Long-term yields: mortgage rates follow the 10-year Treasury, not the Fed's rate. A cut that does not bring long yields down does little for homebuilders.
How this connects to our coverage
U.S. Bancorp (#91), Charles Schwab (#55) and Lennar (#95) are Holds on the Haverhill Hundred, and our Robinhood report covers how rate cuts affect its interest income. For the housing side, see our Housing Recovery Watch.
Sources and disclosures
Dividend yields, P/E ratios and price moves are calculated from closing prices and each company's reported results and declared dividends over the last four quarters.
Disclosures. Haverhill Financial Research is a publisher of general financial commentary. This watchlist is not personalized investment advice and does not consider any reader's financial situation; readers should do their own research. Inclusion on a watchlist is not a recommendation to buy or sell. The author of this post does not hold positions in the companies named. Data as of October 9, 2026.
