It’s safe to say that one of the biggest concerns that economists and investors have on their minds at this time is inflation. With historic amounts of fiscal stimulus being added to the economy and steadily increasing government spending, many believe that widespread inflation is already occurring. This week we learned that the consumer price index, which can be used as a proxy for inflation, rose 0.6% in March from the previous month and 2.6% from a year ago. When you consider things like gasoline prices surging 9.1% in March and home prices that are up 16% over the past year, it’s safe to say that investors should at a minimum entertain the idea that inflation could be rising.
Regardless of how serious you think this issue might be, it doesn’t hurt to start looking at high-quality stocks that can help you protect your net worth and even grow it over the long term. Dividend stocks can be a great way to hedge against inflation, especially if you choose companies that are known to increase their payouts over time. Let’s take a look at 3 dividend stocks to help you fight inflation below.
Newmont Corporation (NYSE:NEM)
What if you could find a stock that not only pays out a nice dividend but also offers exposure to one of the most historically effective hedges against inflation? That’s exactly the case with Newmont Corporation, which is the largest gold-mining company in the world. With assets and operations in North America, South America, Australia, and Africa, investors can expect this company to consistently produce gold, generate strong free cash flows, and benefit from rising gold prices.
Newmont Corporation is also a great option to consider given its strong balance sheet and attractive dividend yield of 3.63%. The company increased its dividend by 38% in February 2021 and has a strong history of returning cash to shareholders over the years with dividends and share buybacks. It’s also worth noting that Newmont Mining possessed an industry-leading 94 million ounces of gold mineral reserves and 65 million ounces of gold equivalent ounces reserves at the end of FY 2020. If gold prices start to rally due to inflation fears, investors will be glad they own a stock like Newmont Corporation.
Procter & Gamble (NYSE:PG)
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