Neither war, nor higher interest rates, nor runaway inflation seemed to drag stocks down last week. Despite a 10% rise in crude oil prices and 10-year Treasury yields rising above 2.5% for the first time in three years, US equities had a fairly positive week. The S&P 500 index rose 10.2% from an intraday low a month ago, and the Nasdaq 100 rose 13.2% from its low two weeks ago. Small-cap stocks haven’t participated in this week’s rally, and the Russell 2000 Small Cap Index is now down 4% in the past 12 months, compared to a 17.7% gain for the S&P 500 large cap.

The recent market rebound comes even as Federal Reserve governors and Chairman Jerome Powell talk about the need for bigger and more frequent rate hikes to fight inflation. Economists now see the federal funds rate rising from its current level of 0.25% to 3.25% by next March. Although “don’t fight the Fed” is an age-old Wall Street maxim, the market may reflect confidence that the central bank is taking steps to achieve price stability seriously. Russia’s failure to execute a quick takeover of Ukraine could also be responsible for what is at least a transitory bullish jolt.

the Energy Select Sector SPDR (XLE +7.6%) was the best performing sector ETF of the week, and is now up 43.2% year-to-date. Persistent commodity price inflation pushed the materials sector up 4%, and utilities jumped 3.5% into positive territory for the year, even as interest rates fell. were flying. Long-term bonds suffered another bruise with the iShares 20+ Year Treasury Bonds (TNT -3.6%) plummeting by 13% in 2022.

Equity income universe: Double-digit percentage gains for Crude Oil turned into a big week for Master LPs in the Alerian MLP (AMLP +6.5%) ETFs.

High-dividend funds have been among the best performers this year. the SPDR S&P 500 High Dividend (SPYD +3.4%) and SPDR S&P 500 High dividend Low volatility (SPHD +3.4%) ETFs were big winners, as well as High dividend WisdomTree (EDS +2.7%) and PowerShares High Yield Dividend Achievers (PEY +2.5%).

To view the full portfolio of 27 Forbes Dividend Investor stocks, click here to start your 90-day risk-free subscription to Forbes Dividend Investor and or Forbes Premium Income Reportboth written and edited by John Dobosz, the author of this article.

International dividend funds like PowerShares International Dividend Achievers (PID +1.5%) and SPDR S&P Global Dividend (WDIV +0.8%) moved deeper into positive territory for the year.

FDI Portfolio Action: Last Friday‘s Forbes Dividend Investor portfolio of 28 stocks gained 1.54% this week. Strength in energy and international stocks helped our two best weekly performers: the energy transmission company Kinder Morgan (KMI +9.6%) and Chilean Coca-Cola bottler Embotelladora Andina SA (AKO.B +8.2%). Master Energy Limited Partnership Holly Energy Partners, LP (HEP +7.5%) outperformed the AMLP, and our new addition from two weeks ago, the plastics LyondellBasell Industries NV (LYB +5.1%), also performed exceptionally well.

The worst performer of the week was the Denver-based homebuilder MDC Holdings (MDC -10.3%), which slipped after the National Association of Realtors reported on Friday that February pending home sales unexpectedly fell 4.1%, the fourth consecutive decline in a year on the other monthly real estate transactions. Affordability and low inventory levels are fueling the decline, and soaring interest rates will add pressure. The average US 30-year mortgage rate ended Friday at a three-year high of 4.56%, down from 2.88% six months ago.

Erasure: Home builder actions MDC Holdings were beaten last week, along with the rest of the constructors. The stock breached a 10% trailing stop and is removed from this week’s portfolio.

Additions: Any.

Current FDI portfolio: The stocks listed below are ranked from highest to lowest on a model designed to gauge value, and all are considered “buys”. Stocks are rewarded for superior rates of dividend growth and earnings growth, as well as high yields and low payout ratios. The operating cash flow for the last 12 months must be positive and sufficient to cover the dividend. They are also trading at discounts to several five-year average valuation metrics, including price to sales (P/S), price to book value (P/BV), price per to expected current year earnings (P/E), price to cash flow. per share (P/CF) and enterprise value/EBITDA.

To view the full portfolio of 27 Forbes Dividend Investor stocks, click here to start your 90-day risk-free subscription to Forbes Dividend Investor and or Forbes Premium Income Reportboth written and edited by John Dobosz, the author of this article.