7 Dividend Stocks to Beat Inflation
7 Dividend Stocks to Beat Inflation
According to Barron's Ian Salisbury, as inflation worries rise, investors should consider dividend stocks in energy, consumer staples, and healthcare. Ned Davis Research shows that during inflationary periods, energy outperforms the market by 12 percentage points annually, while consumer staples and healthcare beat by 4.3 and 4.0 points respectively.
Selected Stocks
The screen filtered for stocks with at least 3% dividend yield, payout ratio under 80%, and expected earnings growth in 2026-2027. The seven names are: ONEOK (4.6% yield), Medtronic, McCormick, Target (3.6% yield), Keurig Dr. Pepper, Philip Morris International, and Procter & Gamble.
ONEOK, a natural gas pipeline operator, is insulated from price swings due to long-term contracts. Target has risen 25% year-to-date after strong Q1 earnings and an upgraded revenue outlook.
Impacted Symbols
Symbols affected by this headline and their sentiment signals
Medtronic plc.
Medtronic is in the healthcare sector, which historically performs well during inflation. It is directly recommended in the article with favorable dividend yield and growth expectations.
Keurig Dr Pepper Inc.
Keurig Dr Pepper is in consumer staples, resilient during inflation. It is among the recommended stocks with positive dividend yield and earnings outlook.
McCormick & Company, Incorporated
McCormick is in consumer staples with stable demand during inflation. It is recommended in the article with positive dividend yield and growth prospects.
ONEOK, Inc.
ONEOK is in the energy sector, the best performer during inflation. It is highlighted as having the highest dividend yield and is expected to benefit directly.
Philip Morris International Inc
Philip Morris is in consumer staples, resilient during inflation. It is among the recommended stocks with positive dividend yield and growth outlook.
Procter & Gamble Company (The)
Procter & Gamble is in consumer staples with stable demand during inflation. It is recommended in the article with positive dividend yield and earnings outlook.
Target Corporation
Target is in consumer staples, resilient during inflation. The article notes it is up 25% year-to-date with better-than-expected earnings and a 3.6% dividend yield.
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