A few days ago, the US Bureau of Labor Statistics published the Inflation data for July, which one Consumer price index up 5.4 % show. This corresponds to the inflation rate of June, as well as for the fastest inflation increase since August 2008. Although inflation in Germany and Europe is not quite as strong as in the USA, it is nevertheless strongly increased.
Rising prices for goods and services threaten to reduce consumers ‘ purchasing power. One of the best ways to counter inflation is to invest money in dividend stocks. Companies that pay dividends are often profitable and have proven operating models.
According to a 2013 report by J. P. Morgan Asset Management, publicly traded companies that initiated and increased their payouts between 1972 and 2012 achieved a average annual return of 9.5 %. In comparison, non-dividend paying shares in the same period a meager annualized return of 1.6%.
The following three companies are perfect examples of high-growth dividend stocks that can help curb inflation.
AstraZeneca: 2.5% yield
After two decades of mediocre performance, AstraZeneca (NASDAQ:AZN) has become the high-growth cash flow powerhouse developed. Between his market-leading return of 2.5 % and one sustainable double-digit growth rate can the company help defeat inflation.
Having overcome its competition concerns, AstraZeneca has Attention focused on oncology and cardiovascular therapieswhere it spends most of its organic growth recorded. A Trio of oncology blockbusters (Tagrisso, Imfinzi and Lynzparza) has a paving the way for sustainable double-digit sales growth. There is also the Type 2 diabetes drug of the next generation, Farxiga, which in the first half of 2021 was an incredible Sales growth of 60% and currently a Annual sales of approximately $ 2.7 billion achieved.
About his steady in addition to organic growth potential, AstraZeneca is making waves on the acquisition front. Last month, the company closed its $ 39 Billion Acquisition of ultra-rare disease Drug Developer Alexion Pharmaceuticals ab. The beauty of a successful rare disease operating model is that it virtually no competition there and insurance companies do not push back the high list prices.
Innovative Industrial Properties: 2.4% yield
Which Cannabis industry is a great place to look for growth stocks. But there is also a first-class dividend share. The on medical marijuana focused Real Estate Investment Trust (REIT) Innovative Industrial Properties (NYSE:IIPR) has announced Potential to more than double its sales in the next two years, while at the same time creating a annual basic payout of $ 5.60 provides, which corresponds to a yield of 2.4%.
Innovative Industrial Properties, IIP for short, acquires medical cultivation and processing plants with the aim of renting them out for longer periods. In August, IIP owned 73 Properties covering 6.8 Million Rentable Square Feet in 18 Legalized States. The best part is that the rentable area 100% rented, with a weighted average rental period of 16.7 years.
While acquisitions are the main source of growth for IIP, it is worth noting that the Company a very modest organic growth component built-in. Every year there is a inflationary rent increase of more than 3% to its tenants and raises a Property management fee of 1.5 %, which is based on the annual rental price.
Innovative Industrial Properties is also perfectly positioned to benefit from the federal government’s lack of cannabis reform with their sale-leaseback program. As long as marijuana remains illegal at the federal level, access to basic banking services for cannabis companies is restricted. IIP fills the gap by Cash paid for cannabis facilities. Subsequently, the company leases these acquired properties back to the seller. In this way, marijuana companies get the money they need and IIP wins long-term tenants.
Enterprise Products Partners: 7.9% return on investment
Yes, high-growth stocks can also have dividends with high returns. The Master limited partnership Enterprise Products Partners (NYSE: EPD) and their Return of almost 8 % are a perfect example of how consistent growth and a hefty dividend can help investors dampen inflation.
Granted, some people will be suspicious of investing their money in an oil stock after what happened to the industry last year. The pandemic led to a historic drop in crude oil demandwhich ultimately led to the fact that the Crude oil futures briefly plunged into negative territory. Fortunately, Enterprise Products Partners is Midstream focus well protected.
While drillers may be directly affected by lower crude oil prices in the short term, midstream companies such as Enterprise Products Partners, which deal with the Transmission and storage of oil, natural gas and natural gas liquids, not directly affected. On June 30, it controlled over 50,000 miles of transportation pipeline and could hold about 14 billion cubic feet of natural gas.
Enterprise Products has its annual basic distribution increased in 22 consecutive years and has in the Maintain a payout coverage ratio between 1.6 and 1.8 years in 2020 and 2021. A payout coverage ratio below 1 would not be sustainable. With 1.6 to 1.8, this payout is rock solid.
Last updated on August 15, 2021
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