High-yielding stocks are a good way to outpace inflation

ON UK INCOME

Newton's Simon Nichols explains why choosing companies with high and growing dividend yields is a good way to tackle inflation.

Given the interdependency of the global financial system, economic growth rates, corporate profitability and the return from investments are increasingly being driven by the action/inaction of politicians and central bankers. Ultra loose monetary policy remains in place and investors are still being forced to take on risk to generate a reasonable level of income and return. In the main, equity valuations have recovered and investors must now pick stocks selectively to avoid companies where the lack of growth in developed markets manifests itself in their results. We are now beginning to ...