Inflation in 2021 reached a whopping 7%, with every indication from top economists that it will continue to be an issue in 2022, albeit reducing somewhat to around the 3-4%.range. What impact then will high inflation have in eroding financial nest eggs? Well, that really all depends on where your funds are, if they are being held in cash or in a bank deposit account, watch out! Cash can quickly be eaten up by inflation and may explain Ray Dalio’s famous quote that “Cash is trash!”
In this article the Traveling Trader shares valuable insights on how to combat inflation at any time, but most importantly in today’s environment when it’s running rampant and could be a huge detriment on investment values.
For those not already aware of the Traveling Trader and who have yet to view his content on his YouTube channel and Patreon Community platforms, here is a brief backstory. The Traveling Trader provides high-quality trading content regarding crypto, stocks, options, ETF’s etc. The content he shares aligns with anyone looking to generate an additional revenue stream, those looking to retire and become full time traders or investors ready to take their trading skills to the next level. The Traveling Trader always knew he wanted to trade full-time and travel full-time. With those aims now realized, and 20 years of trading and traveling experience behind him, he now utilizes what he has learned, including proactively navigating 2 market crashes. To gain that same financial freedom he enjoys, his content helps maximize investment returns for as many traders as possible.
Now that we have a handle on the Traveling Trader let’s deep dive into how rising inflation can be offset by prudent investing, most notably taking advantage of dividend paying stocks.
In the list below the Traveling Trader shares his top 5 dividend stocks for 2022::
1. Chevron (CVX) Energy Sector stock, dividend yield, 4.31%, 34 year consistency rate of paying out dividends.
2. Altria Group (MO) Tobacco Industry stock,* dividend yield, 7.07%, 52 year consistency rate.
3. Lockheed Martin Corp (LMT) Aerospace company, dividend yield 3.6%, 27 year consistency rate.
4. IBM (IBM) Tech sector stock, dividend yield 4.86%, 22 year consistency rate.
5. MPLX LP (MPLX) Energy Sector stock with caveat,** dividend yield 10.8%, 8 year consistency rate.
* Traveling Trader encourages using own moral compass regarding investing in this tobacco/vaping company stock.
** This stock requires a K1 IRS tax return form on income gained. Traveling Trader strongly suggests using this stock as a long-term investment, such as retirement.
Traveling Trader emphatically urges investors to not just look for high dividend yields alone but to align this with solid stocks when performing their due diligence and risk assessments. The strength and quality of a company will give clear patterns to dividend yields and longevity.
To receive a deeper explanation of Traveling Trader’s top 5 Dividend stock picks follow the link below:
To access more high-quality trading content, follow here: www.thetravelingtrader.com