I am planning to hedge against various financial risks by buying stocks that benefit from those financial risks.
For example, I use quite a lot of electricity. I have already purchased stocks of companies that produce electricity using hydropower and nuclear power, mechanisms that are practically immune to fuel cost increases.
I also spend quite a lot of money to purchase gasoline for my car. To hedge against this risk, I planned to purchase enough shares of ExxonMobil that the oilfields I effectively own will provide enough gasoline for my car for its economic lifetime (after I scrap the current car, I will probably choose an electric car due to advances in electric car technology).
Now, the main major remaining risk is the variable interest rate in my loans. 20% of my loans have a variable interest rate right now, and 50% have a fixed 10-year rate. The 50% loan will however be repaid in 25 years, so for the remaining 15 years the interest rate changes to a variable one, or I can opt in for another 10-year fixed interest rate period, but that will happen not at today's rates but rates 10 years from now.
I was thinking if there is a way to hedge against this risk by buying stocks that benefit from rise in interest rates. I refuse to do any short selling or non-stock investments. Of course, one possibility would be to repay the loans, but I don't have money for that right now. Another possibility would be to invest in short-duration bonds, but that also requires more money than I have currently (essentially, it requires a large percentage of my current liabilities).
So, are there any companies that benefit a lot from increases in interest rates?
The electricity use and gasoline use can be hedged by just 3000 USD investment for electricity producing and 3000 USD investment for gasoline producing. I was hoping to get a <5000 USD investment to hedge against the interest rate risk of a 80 000 USD worth of loans. Is this a realistic goal at all, or am I asking too much from a <5000 USD investment? 1% interest rate increase would mean that I need to get 374 USD of more dividends after taxes every year for the 1% increase to cover the increased interest costs. Is it even possible to find a company paying 374 USD of more dividends for every 1% interest rate increase for <5000 USD investment? Of course, the loans will be eventually repaid, so slightly less than 374 USD might be enough.
Related question: Are there ways to hedge against a rise in interest rates, other than refinancing my loan? ...but I don't do short-selling so the answer is unacceptable to me.
Note I live in the Eurozone. I converted the amounts from EUR to USD using today's exchange rates, as I believe most people are more familiar with USD rather than EUR.