Kryptonite

In the comics, kryptonite is the only known threat to the unstoppable Superman. It is a green, crystalline material originating from Superman's home world of Krypton that emits a unique radiation which weakens Superman.

Here in 2022, inflation feels unstoppable. What it costs to live each of our lives is going up, and at rates we have not seen in a long time. So as investors, what tools can be used to fight inflation? Well, historically stock dividends have been the kryptonite which weakens and beats inflation.

Check out the chart below, courtesy of WisdomTree. Yep - boring old dependable dividends paid to you by your stocks have increased by an average of +5.7%/year since 1957, far outpacing inflation.

My team and I have always favored ownership of dividend stocks in client portfolios. And over the last year, as inflation has risen, we have increased the number of dividend-payers in almost all of our strategies.

If you have questions, we are here to help you.

The views expressed herein are those of the author and do not necessarily reflect the views of Raymond James & Associates or its affiliates. All opinions are subject to change without notice. Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Past performance is no guarantee of future results.

The Standard & Poor's 500 Index is a market capitalization weighted index of the 500 largest U.S. publicly traded companies by market value. It is unmanaged and cannot be invested into directly.

The investments listed may not be suitable for all investors. Raymond James & Associates recommends that investors independently evaluate particular investments, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment will depend upon an investor's individual circumstances and objectives.

Dividends are not guaranteed and must be authorized by the company's board of directors.