Inflation has definitely penetrated the U.S., as the June U.S. producer price index jumped 7.3% year-over-year and 1% month-over-month. The YOY surge was the highest on record. Investors looking for a conservative way to combat the inflation, which will probably stay elevated for at least the next year, should consider safe, high-yield stocks. Some say that high-yield stocks involve any equity with a yield that’s above that of the 10-year Treasury note. But given the depressed state of Treasury yields and the strength of inflation, I decided to use a different definition of “high-yield stocks.”
Specifically, I picked stocks with yields of at least 2%, about 50% above the average yield of the S&P equities. However, two of the four names on my list have yields that are well above 2%. These are the high-yield stocks that I chose: The Toronto-Dominion Bank (NYSE:TD), UPS (NYSE:UPS), Exelon (NASDAQ: EXC) and Kroger (NYSE:KR).
Source: InvestorPlace
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