Inflation and dividends don’t get along.
If you’re living on a fixed income and the money coming in isn’t growing at least as fast as rate of inflation, you get poorer every year. The purchasing power of your dividend stocks shrinks.
Some investors try to combat rising costs with higher current yield — but that’s an easy trap to fall into.
Instead, look for growing dividends. And a super simple equation can help you find the best investments to carry you through retirement and any inflation situation.
The post Beat Inflation With Dividends — The Power of Yield on Cost appeared first on Money & Markets, LLC.