Dividends4Life: These Stocks' Dividend Growth Trounces Inflation

In a climate of historically low interest rates, yield is hard to come by. A side effect of low interest rates has been the rise in price of everyday necessities, such as food and fuel -- meaning investors are truly stuck between a rock and a hard place. Income is tough to find, as traditional savings products yield almost nothing, but income is exactly what savers need when inflation hits. Thankfully, investors can buy high-quality dividend stocks that increase their payouts at rates that far exceed inflation. So long as you're willing to endure the ups and downs of the stock market, you can protect the purchasing power of your hard-earned dollars with blue-chip dividend-growers.

That's why owning shares of high-quality dividend stocks is so important. Equity yields are attractive right now, particularly when many stocks have the financial ability to raise their dividends over time. One great example is fast-food giant Yum! Brands (NYSE: YUM). Consider the recent dividend actions of tech giants Microsoft (NASDAQ: MSFT) and Texas Instruments (NASDAQ: TXN). Microsoft boosted its dividend by 22% on Sept. 17, and it now yields an attractive 3.4% at recent prices. Meanwhile, Texas Instruments has equally embraced dividend payments as a means to enhance shareholder returns.

Source: Motley Fool

Related Articles:
- Free Cash Flow Payout vs. Dividend Payout
- 9 Dividend Stocks Trading at a Double-Digit Discount
- 6 High-Dividend, Low P/E Value Stocks
- How Much Money Will You Need Before Retiring?
- The 2013 Dividend Achievers

Click here to have future posts delivered to you for free!

_____________________________________________________________________

0 comments

Post a Comment

~

Latest From Dividend Growth Stocks

Popular Posts Last 30 Days