3 Dividend Stocks That Are Crushing Inflation
Warren Buffett has called inflation "a gigantic corporate tapeworm" that eats into wealth, leaving only the illusion of profits. He used an analogy to show this, saying that if you buy stocks with money that could buy 10 hamburgers, and later sell for an amount that can also buy 10 hamburgers, then, "You may feel richer, but you won't eat richer."
Today, the annual rate of inflation stands at 2.9%, per Consumer Price Index data released in September. Since the COVID-19 pandemic hit in February 2020, prices have risen by about 25%.
This raises the question: Did companies that nominally raised dividends by less than that amount really increase their dividend in the most important sense?
Source Fool.com
