If there is one theme that has continued to captivate investors’ minds over the last few years, it has to be inflation. The steady rise of prices has been a constant force since the end of the pandemic. And while measures of inflation have slipped from peaks, it’s stayed stubborn, above the Federal Reserve’s 2% target. And now, it looks to be roaring back. For investors, fighting inflation has to be on the menu of portfolio allocations. Luckily, there is a tried and true method for doing just that.
We’re talking about dividend stocks.
But not just any dividend stocks. Dividend growers. It turns out that stocks that consistently raise their payouts outperform inflation by a wide margin, both in terms of growing income and capital appreciation. For many investors, fighting the rising tide of prices could be as simple as buying top-notch dividend payers and collecting the rewards.
