Want to Cash In on High Inflation Rates? Buy These 2 High-Yielding Dividend Stocks.
The latest inflation data wasn't what the market wanted to see. The Consumer Price Index (CPI) rose by 0.5% month over month in January, and 3% year over year. That was higher than expected -- the consensus had been for a 0.3% monthly rise and a 2.9% annual pace -- and well above the Federal Reserve's stated target of around 2%. Meanwhile, another inflation gauge, the Producer Price Index (PPI), rose at a seasonally adjusted 0.4% rate last month, which was higher than the 0.3% increase economists expected. Hotter-than-expected inflation is bad news for consumers and borrowers. It will likely prevent the Federal Reserve from making more reductions to its benchmark interest rate anytime soon. However, some companies stand to benefit from inflation. Two notable beneficiaries are W. P. Carey (NYSE: WPC) and Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP). Higher inflation should enable them to grow their cash flows faster in the future, which could support higher growth rates in their high-yielding dividends. Continue reading
The latest inflation data wasn't what the market wanted to see. The Consumer Price Index (CPI) rose by 0.5% month over month in January, and 3% year over year. That was higher than expected -- the consensus had been for a 0.3% monthly rise and a 2.9% annual pace -- and well above the Federal Reserve's stated target of around 2%. Meanwhile, another inflation gauge, the Producer Price Index (PPI), rose at a seasonally adjusted 0.4% rate last month, which was higher than the 0.3% increase economists expected.
Hotter-than-expected inflation is bad news for consumers and borrowers. It will likely prevent the Federal Reserve from making more reductions to its benchmark interest rate anytime soon.
However, some companies stand to benefit from inflation. Two notable beneficiaries are W. P. Carey (NYSE: WPC) and Brookfield Infrastructure (NYSE: BIPC)(NYSE: BIP). Higher inflation should enable them to grow their cash flows faster in the future, which could support higher growth rates in their high-yielding dividends.
