Higher-for-longer interest rates are forcing investors to rethink where income and stability really come from, even as the Morningstar US Market Index barely shifted in September and worries about a 10-year Treasury near 5.25% to 5.5% linger. This mix of pressure and opportunity is pushing attention toward cash flows investors can see and touch. This article breaks down three dividend payers from our financials and utilities screener that Morningstar currently views as positively exposed to this backdrop, and explains what the latest news could mean if you already own them or are simply watching from the sidelines.
The stocks covered next are just a starting sample from this idea. The full screen surfaced 17 more U.S.-listed dividend financials and utilities with equally compelling stories that are not discussed below. To go straight to the data, analyze, compare, and identify your own highest-conviction income plays, head into the U.S. High-Quality Dividend Financials and Utilities in a Higher-for-Longer Rate Environment screener.
MarketAxess Holdings (MKTX)
Overview: MarketAxess Holdings runs an electronic bond trading platform that connects institutional investors and broker dealers, earning fees from trading technology, data, and pre and post trade services across global fixed income markets.
Operations: MarketAxess generates about US$870 million from end to end trading solutions, with roughly US$568 million from the United States, US$191 million from the United Kingdom, and US$110 million from other regions.
Market Cap: US$5.8b
MarketAxess Holdings gives this screener exposure to the plumbing of fixed income markets. In this segment, higher-for-longer yields can keep trading activity and cash generation in focus for income-minded investors.
"The rollout of AI and data products such as TraX Tape, which launched in mid 2026 as a global bond market data and analytics platform built on trillions of dollars of trading inquiries and responses, positions MarketAxess to grow data and analytics revenue alongside execution and to support earnings through higher margin information services."
The real test for investors is how one still developing shift in MarketAxess Holdings’ business mix ultimately feeds through to future margins.
That margin question is exactly what the full narrative for MarketAxess Holdings unpacks in detail, including how AI and data could accelerate or stall the next phase of MarketAxess Holdings.
Consolidated Water (CWCO)
Overview: Consolidated Water runs a utility-like water business that produces, treats, and delivers potable and reuse water to governments, municipalities, and commercial users.
Operations: Consolidated Water generates about US$47.6 million from services excluding manufacturing, US$35.5 million from bulk, US$32.8 million from retail, and US$11.7 million from manufacturing.
Market Cap: US$483 million
Consolidated Water fits this higher-for-longer dividend theme because it sells essential water services on recurring contracts that often resemble regulated utility cash flows. This structure can appeal to investors hunting for income backed by long-term infrastructure projects.
"The imminent construction phase of the large Hawaii seawater desalination project, following successful pilot testing and nearing permit approvals, is expected to drive substantial growth in the services segment's revenues over 2026-2027, improving earnings visibility and supporting top-line growth."
The real swing factor for investors is how one unseen pressure shapes future returns on all the capital now going into new capacity.
That unseen pressure is exactly what the full narrative for Consolidated Water unpacks. It shows how desalination build out, contract structures, and capital intensity could be quietly reshaping Consolidated Water's income story.
Houlihan Lokey (HLI)
Overview: Houlihan Lokey is an advisory-focused investment bank that earns fees by guiding clients through M&A deals, restructurings, and valuation assignments worldwide.
Operations: Houlihan Lokey generates about US$1.65b from Corporate Finance, US$520 million from Financial Restructuring, and US$354 million from Financial and Valuation Advisory, with US$1.72b from the United States and US$806 million from international markets.
Market Cap: US$8.8b
For a screener built around high quality financials that lean on fees rather than balance sheet risk, Houlihan Lokey fits neatly as an income payer. Its work advising on deals and restructurings can remain relevant when rates are higher and capital is more selective.
"Sustained elevated restructuring activity, now supported by widening credit spreads and higher default rates among smaller private credit borrowers, is reinforcing the role of Financial Restructuring as a stabiliser for group revenue and net margins."
A key question is how a still developing shift in how clients finance deals and handle stressed credit may tilt the balance between resilience and pressure.
That shift is exactly what the full narrative for Houlihan Lokey unpacks, showing where Houlihan Lokey’s fee engine could be accelerating, decoupling, or quietly stalling next.
Seeking Alternatives Before Momentum Flies
Fresh ideas move first. Once momentum builds, prices can be flying while the best entry points are already gone. Scan these under-the-radar lists before the crowd, act now.
- Target cash-generative outliers before they catch a full rerating by running the 27 high quality undervalued stocks while it still reflects current mispricings.
- Hunt for potential long-term compounders by sweeping through the curated 27 top founder-led companies and focusing on operators with significant ownership from the start.
- Zero in on durability by reviewing the hand picked 31 resilient stocks with low risk scores and stress testing which businesses might hold up when volatility suddenly jumps.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com