The specter of escalating inflation is rearing its ugly head, and that's not good news for investors. Consumer prices in June surged by the most since 2008, further strengthening a case for the Federal Reserve to hike interest rates earlier than anticipated. If that happens, equity values will decline and investors will move their funds from high-growth stocks to safe havens such as government bonds. For equity investors, dividend stocks that raise their payouts faster than the rate of inflation are one effective avenue to consider.
Keeping this theme in mind, below we've short-listed three stocks that income investors could consider buying now. Each stock not only offers the potential for strong capital gains, but also has provided substantial payout raises each year to counter the impact of higher prices. The U.S. home improvement giant Home Depot (NYSE:HD) has a remarkable track record of boosting its payout much more quickly than the rate of inflation. The global coffee-chain operator Starbucks (NASDAQ:SBUX) is another suitable candidate for earning growing dividends each year while also investing in a top-rated consumer stock. As the provider of the Windows operating system and Office software, Microsoft (NASDAQ:MSFT) certainly fits the bill.
Source: Investing.com
Related Articles:
3 Top-Quality Dividend Stocks To Help Beat Surging Inflation
Posted by D4L | Wednesday, August 04, 2021 | ArticleLinks | 0 comments »________________________________________________________________
Subscribe to:
Post Comments (Atom)
~
Popular Posts Last 30 Days
-
As a relatively new blogger, the one thing that has stood out in my mind is the number of Canadian bloggers in the areas that I am most inte...
-
GameStop (NYSE:GME) lost about 40% of its market value over the past three years, as rising digital downloads and declining mall traffic thr...
-
In a capitalistic society, opportunities to generate (mostly) passive income are all around us. Dividend growth investing is one of the most...
-
These elite income producers have rallied this year. Their brilliance at producing passive income seems to have caught the market's eye ...
-
Since the market highs in July, stocks have been under considerable pressure. Indeed, 10-year Treasury yields are at the highest level since...
-
Buying dividend stocks can be tricky. Oftentimes, stocks that pay exorbitantly high dividends have underlying financial problems, and their ...
-
While optimism in the broader market remains robust – particularly for hyped-up sectors like technology – investors may still want to consid...
-
If you are looking for reliable dividends, these three Dividend Kings should be right up your alley. Dividends are paid at the discretion of...
-
A strong dividend investing strategy may be to focus on high-quality names that score well on several dividend-related metrics. In other wor...
-
Despite all that work, its valuation remains dirt cheap. That's a big reason why its distribution currently yields more than 9% despite ...
0 comments
Post a Comment
Post a Comment
Note: Only a member of this blog may post a comment.