Optimal Finance Daily - Financial Independence and Money Advice 3167: Can Dividend Stocks Fight Inflation While Accelerating Portfolio Growth by Gordon Stein of Cash Flow Cookbook
Jun 5, 2025
Explore how high-quality dividend stocks can fight inflation while boosting portfolio growth. Discover examples like Lockheed Martin and learn about the benefits of automatic dividend reinvestment. The discussion emphasizes the stability and rising income that dividend growth companies can offer, alongside the advantages of maintaining a diversified portfolio. Delve into the strategic considerations of choosing between immediate income and long-term growth, highlighting the importance of individual investment circumstances.
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Dividend Stocks Fight Inflation
- Dividend stocks protect against inflation with rising prices and dividends.
- Dividend growth above inflation offers rising income, smoothing price volatility.
Choosing Quality Dividend Stocks
- Seek dividend stocks with long rising dividend histories and low risk of cuts.
- Prefer stocks cheap relative to market, stable customers, and tech adaptability.
Lockheed Martin Dividend Example
- Lockheed Martin raised dividends for 20 years and performed strongly over a decade.
- Reinvesting dividends raised returns to over 21% annually, far beating inflation.