NEW YORK ( TheStreet) -- Amid rising interest rates, banks may be a large beneficiary, and TheStreet's David Peltier has a couple of his favorite names in mind.

In the last five weeks or so, 10-year Treasury yields have gone from 1.6%, all the way up to 2.6%, which has been putting more pressure on dividend stocks, according to Peltier.

With increased competition between stocks and treasury bonds, Peltier is finding the best of both worlds: bank stocks.

Peltier said that bank stocks actually become more profitable with higher rates and that the ones with dividends will likely be the best bet for investors, since they'll still collect quarterly payouts, while taking advantage of a rising interest rate.

Peltier said that he likes Wells Fargo ( WFC) for less than $40 and JPMorgan Chase ( JPM) around $48.

Both banks have a yield close to 3% and should do well in a rising interest rate environment.

-- Written by Bret Kenwell in Petoskey, Mich. .

Bret Kenwell currently writes, blogs and also contributes to Rocco Pendola's Weekly Options Newsletter. Focuses on short- to intermediate-term trading opportunities that can be exposed via options. He prefers to use debit trades on momentum setups and credit trades on support/resistance setups. He also focuses on building long-term wealth by searching for consistent, quality dividend paying companies and long-term growth companies. He considers himself the surfer, not the wave, in relation to the market and himself. He has no allegiance to either the bull side or the bear side.

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