Dividends tend to rise faster than inflation, and that could become their most attractive feature if the value of the pound and the interest rate on savings keep falling.
With inflation in mind, I decided to focus my latest article for Master Investor magazine on a handful of UK stocks that combine a decent dividend yield today with super-consistent and inflation-beating dividend growth.
What I learned from analysing them is that – unsurprisingly- very few stocks can combine consistent past growth with a decent dividend yield today and bright future prospects.
Most of those five companies have problems of one sort or another, although having said that, I do hold The Restaurant Group and British American Tobacco in both the UKVI portfolio and my personal portfolio.
You can download just the article or the entire Master Investor magazine (which this month is about how to protect your portfolio from inflation) using the links below:
Five Inflation-Beating Dividend Stocks