Dividends4Life: Social Security’s Increase Not Keeping Up With Inflation

Social Security retirement benefit checks will rise by 1.7% in 2013, even though the general rate of inflation is actually a smidge higher. The disconnect is because the Social Security cost-of-living-adjustment uses a more specific inflation measure: the CPI for Urban Wage Earners and Clerical Workers (CPI-W). And from the third quarter of 2011 through the third quarter of this year that gauge clocked in at just 1.7%.

As with all investing, a diversified approach to dividend investing can help mitigate the risk of sector overweights. Stocks rated Attractive by YCharts that deliver strong dividend yields include stable consumer stocks such as Campbell Soup (CPB) and Kellogg (K) and energy companies such as Chevron (CVX) and Royal Dutch Shell (RDSA). For investors looking to stay ahead of inflation in the coming years, focus on companies with a steady dividend growth pattern that is above the inflation rate.

Source: YCharts

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