Please try a new searchThe prospect of rising interest rates has taken a toll on Home Depot (NYSE:HD) and Lowe's (NYSE:LOW).Both stocks have lost more than 8% this year, while the Dow Jones Industrial Average has lost just over 2%.The drop comes after a powerful rebound last year, fueled by a booming housing market and low interest rates, two catalysts that enticed Americans to spend more on their homes.However, the changing macroeconomic environment suggests that this rally has already peaked and more short-term weakness lies ahead.Since reaching its 52-week high in late December last year, Atlanta, Georgia-based Home Depot has fallen 13.3%.The stock closed Wednesday at $364.37. Home Depot Weekly Chart Similarly, Mooresville, North Carolina-based Lowe's peaked in December of last year, but has since lost 11% of its market capitalization. , closing yesterday at $233.66.Lowe's Weekly Chart The biggest threat to home-linked securities comes from the Federal Reserve and whether it will aggressively raise interest rates to fight inflation.If that happens, it will hurt demand for single-family homes, one of the main drivers of home improvement demand during the pandemic.Signs are beginning to accumulate that housing market conditions are changing.The University of Michigan Purchasing Conditions Index fell from 143 in January 2020 to 63 in November.In addition, the pandemic-triggered race from small urban apartments to more spacious single-family homes in the suburbs may have peaked as both schools and offices reopen.On the other hand, although Home Depot and Lowe's both beat analysts' expectations in their latest results, growth is slowing.Between April 2020 and April 2021, HD posted four consecutive quarters of double-digit same-store sales growth.But in the third quarter, that pace of expansion was 6.1%.Lowe's posted a 2.6% expansion.There is no doubt that the great move up by Home Depot and Lowe's is over in the current cycle.However, we continue to recommend both stocks to investors looking for long-term income who want to take advantage of recent weaknesses.Both companies are well positioned to weather the current inflationary environment and have a strong track record of consistent dividend payments.HD currently pays a quarterly dividend of $1.65 per share, which has grown, on average, 22% each year for the past five years.That escalation is likely to continue.The company has a low, sustainable payout ratio of 43%, which leaves plenty of room for the retailer to distribute more cash to shareholders.Lowe's has also been increasing its payments regularly, outpacing the rate of inflation.The company currently pays a dividend of $0.80 per quarterly share, which translates to an annual return of 1.2%.Lowe's average dividend growth rate per share has been about 17% over the past five years.Truist Securities, while upgrading HD from "hold" to "buy," said in a note that the long-term outlook remains strong.His note adds:"We expect key industry factors such as supply-demand imbalances in the housing market, pandemic-driven behavioral changes, and aging housing infrastructure to drive significant home improvement growth." In addition, we believe that Home Depot will continue to gain share due to its size/scale advantages and improved supply chain capabilities. We are buyers on the HD stock."UBS (SIX:UBSG) also reiterated its purchase for both HD and LOW in a note this week saying:"Our findings indicate that home improvement trends remained strong in the fourth quarter and HD/LOW again capitalized on the context. Therefore, the companies are well positioned to deliver revenue growth and expansion." of the margins".Capital gains-focused investors should not expect HD and LOW prices to appreciate significantly this year as the cycle of low interest rates comes to an end and the real estate market prepares for a downturn.However, both names could be a good entry point for long-term investors focused on income and growing dividends.This article was written exclusively for Investing.com Over the past decade, dividends included, Oracle (NYSE:ORCL) stock has...Understanding the uses of financial derivatives is vitally important.In this note I am going to tell you what they are and why they can be very useful, especially for...The stock indices of the world's main financial center continue to fall and reached their lows in 2022, entering a new "bearish" market territory as...From Investing.com Spain we invite you to interact with other users and share with them your points of view and your doubts in relation to the market.However, in order for the debate to be as enriching as possible, please, we ask you to take into account the following criteria:How does the comments section work?All comments are published automatically as long as they do not violate any of the above rules.As soon as the system detects a possible "infraction", the comment is pending review, so it may take longer to appear on the screen (avoid duplicating comments).If the moderator detects that it is an inappropriate comment, he will proceed to eliminate it.If the user engages in such behavior, we will proceed to temporarily suspend your account and it will count as a first notice.If the behavior is repeated after the first notice, the account will be permanently suspended.Contact Technical Support with any questions that may arise.It is the only way of communication to deal with these issues.Are you sure you want to block %USER_NAME%?By doing so, neither you nor %USER_NAME% will be able to see each other's posts on Investing.com.%USER_NAME% has been successfully added to your blocked users listYou just unblocked this person;you have to wait 48 hours to be able to block it again.Tell us what you think of this comment