So much for ‘transitionary.’ Thanks to a myriad of factors—from supply chain constraints to geopolitical worries—prices have skyrocketed over the last few quarters. Both consumers and businesses are simply paying more. As such, the surge in inflation has had a variety of market participants in a tizzy. But that doesn’t include dividend investors.
Dividend stocks continue to work well in the current inflationary environment, limiting losses and providing inflationary-beating income.
Nonetheless, the best could be ahead. Looking at historical data, it may seem that inflation could be getting ready to peak and moderate to more normal levels. And in that, dividend stocks could be mega-sized winners in this new environment.
Active fixed income ETFs could help reduce inflation as well. Find our more here
