Three Top Dividend Stocks to Consider with High Inflation
Higher inflation has been rough on us all.
We’ve seen it in oil, natural gas, and food prices.
In December, for example, the consumer price index (CPI) was up 7% year over year — the fastest since 1982, according to The Wall Street Journal.
“There is still tremendous momentum when it comes to inflation right now. While inflation is likely to peak in the next few months, the overall pace is going to remain a challenge for consumers, businesses and policy,” said Sarah House, senior economist at Wells Fargo.
In addition, Joseph Heider, president of Cirrus Wealth Management says, “I think you’re going to continue to see inflationary pressures for the remainder of this year and probably into early 2023,” as quoted by NBC News.
Protect Your Portfolio from Inflationary Threats
Rising inflation has become a major concern for retirement age investors.
According to a new survey from Global Atlantic Financial Group, investors ages 59 to 75 are concerned that inflation will wreak havoc on their investments, as noted by CNBC. About 71% of those surveyed believe it will negatively impact them.
“Moreover, 46% of investors said they believe rising inflation and low interest rates will make it more difficult to have steady income in retirement. Of those invested in fixed income, 46% said they are concerned about low interest rates affecting their retirement income,” added CNBC.
However, there are stocks that can help keep your portfolio safe from inflation.
Some of the top ones include:
WP Carey (WPC)
With WP Carey, nearly all of its rental agreements include contractual rent increases for inflation, according to BNK Invest. In fact, about 60% are tied to the consumer price index.
Well diversified with industrial, warehouse, office, retail, and self-storage, the REIT also pays a yield of 5.32%. Even better, WP Carey is a REIT with 23 consecutive years of annual dividend increases. Most recently, the company increased its quarterly dividend to $1.055 per share, payable January 14, 2022 to shareholders of record as of December 31, 2021.
Pioneer Natural Resources (PXD)
Pioneer Natural Resources paid out $6.76 per share in dividends in 2021. That puts its dividend yield around 11%. Better, the oil producer could have even better days ahead. With crude oil prices pushing higher, the company said, “We’re estimating something near about $20 per share total payout in 2022,” as noted in a conference call.
Also, according to ClearBridge Investments, as quoted by Insider Monkey:
“Over the last year we have also added a position in Pioneer Natural Resources Company, a best-in-class producer in the Permian Basin. We added Pioneer Natural Resources Company as we anticipated rising commodity prices and sought more direct leverage to that trend. Our overweight to energy has benefited our performance this year, in particular through the first half of the year, and we believe the sector, still less than 3% of the S&P 500, remains underinvested and attractive going forward.”
Rio Tinto Group (RIO)
With a dividend yield of 9.59%, Rio Tinto Group engages in exploring, mining, and processing mineral resources worldwide. The company offers aluminum, copper, diamonds, gold, borates, titanium dioxide, salt, iron ore, and uranium.
Even better, according to Rio Tinto Chief Executive Jakob Stausholm:
“In 2021 we continued to experience strong demand for our products while operating conditions remained challenging. Despite this, we progressed a number of our projects, including the Pilbara replacement mines, underlining the resilience of the business and the commitment and flexibility of our people, communities and host governments. We are seeing some initial positive results from the implementation of the Rio Tinto Safe Production System, which we will significantly ramp up in 2022.”
February 7th, 2023Is The Stock Market Cycle Pointing To A New Bull Market Already?Are we in another bear market rally or the start of something new? That’s what everyone wants to know, especially as we
February 6th, 2023Job Creation Shocks The MarketIf we’re heading into a recession, how were we met with better-than-expected job growth numbers last week? Unemployment dropped, despite the headlines of tech companies planning to lay off
February 3rd, 2023Job Cuts And Stock Buybacks Keys To Success In 2023 The thing I’ve learned from this earnings season is that a company can have consecutive quarterly drops in revenue and provide a lower
February 2nd, 2023Fed Raises Rates But Bulls Are Still In ControlOk, bulls. You win. I will start lifting my bearish stance on the market. Despite the final 10-minute market sell-off and a Dow that finished
February 1st, 2023What Past Fed Announcements Tell Us The Market Will Do TodayWatch out - this article is going to have some math.Here we are once again on Fed Announcement day. Most of the folks
January 31st, 2022The Hidden Profits Of 2023There is still one more trading day left in January, but if the adage “as the S&P 500 goes in January, so goes the year” holds true, the markets
January 30th, 2022 The Fed Goes Up Against Earnings This Week We are in peak earnings season with some heavy hitters like Pfizer (PFE), Snap (SNAP), Meta Platforms (META), Amazon (AMZN), Alphabet (GOOGL), and Apple
January 17th, 2022Smoother Sailing in 2023 Nothing has changed since the end of 2022, yet traders have already decided that this year won’t be as bad as the last. Bulls have been piling into stocks
January 12, 2023 The Rise Of Bing Over Google - That’s No Joke Before we talk about two tech giants getting ready to battle it out once again, let’s look at the overall market. The
January 9th, 2022 Why I Ignore Most Of The News It’s easy to get caught up in the financial headlines. I’ve certainly done it. Last week shows why I ignore most day-to-day stories. I know
267 Kentlands Blvd #225
Gaithersburg, MD 20878
P. (866) 257-3008
(Monday-Friday 9:00 AM-5:00 PM EST)
Publisher of actionable and proven strategies and tactics to help investors build wealth and reach seven-figure portfolios.
Get notified about new articles, special events, training, and much more