Wednesday, November 9, 2011

10 Inflation-Resistant Income Stocks

Inflation is one of the major risks that retirees face when living off their
nest eggs. The general increase of prices over time would leave retirees on
fixed incomes scrambling to make ends meet in the decades since they left the
work force. Dividend growth stocks are one of the few asset classes available to
investors to provide a stream of income that generally grows over time. For
example, between 1920 and 2005, the dividends paid by the companies included in
the Dow Jones increased by 5.6% per year , which was more than the 3% annual
inflation rate during the period. During the past week, 10 reliable dividend
stocks kept the tradition of rewarding their shareholders with higher
inflation-adjusted stream of income. The companies include: Emerson Electric Co.
(NYSE: EMR ) operates as a diversified manufacturing and technology company. The
company engages in appliance solutions, climate technologies, industrial
automation, motor technology, network power, process management, professional
tools and storage solutions businesses. This dividend aristocrat raised
quarterly distributions by 15.9% to 40 cents per share. This marked the 55th
consecutive annual dividend increase for the company. Only 10 companies in the
world have managed to raise dividends for more than five decades. Yield: 3.3% (
analysis ) Archer-Daniels-Midland Company (NYSE: ADM ) procures, transports,
stores, processes and merchandises agricultural commodities and products in the
United States and internationally. This dividend aristocrat raised quarterly
distributions by 9.4% to 17.5 cents per share. This marked the 37th consecutive
annual dividend increase for the company. Yield: 2.4% ( analysis ) Questar
Corporation (NYSE: STR ) operates as an integrated natural gas holding company.
This dividend aristocrat raised quarterly distributions by 6.6% to 16.25 cents
per share. This marked the 33rd consecutive annual dividend increase for the
company. Yield: 3.5% Mercury General Corporation (NYSE: MCY ), together with its
subsidiaries, engages in writing private passenger and commercial automobile
insurance in the United States. This dividend achiever raised quarterly
distributions by 1.7% to 61 cents per share. This marked the 25th consecutive
annual dividend increase for the company. Yield: 5.8% Microchip Technology
Incorporated (NASDAQ: MCHP ) engages in the design, development, manufacture and
market of semiconductor products for embedded control applications. This
dividend achiever raised quarterly distributions to 34.8 cents per share. This
marked the 10th consecutive annual dividend increase for the company. Yield:
3.9% Lincoln Electric Holdings, Inc. (NASDAQ: LECO ), through its subsidiaries,
manufactures welding and cutting products worldwide. This dividend achiever
raised quarterly distributions by 9.7% to 17 cents per share. This marked the
17th consecutive annual dividend increase for the company. Yield: 1.8% DeVry
Inc. (NYSE: DV ), together with its subsidiaries, provides educational services
worldwide. This dividend stock raised quarterly distributions by 9.4% to 17.5
cents per share. This marked the sixth consecutive annual dividend increase for
the company. Yield: 0.8% Aaron's, Inc. (NYSE: AAN ) operates as a specialty
retailer of consumer electronics, computers, residential furniture, household
appliances and accessories in the United States and Canada. This dividend stock
raised quarterly distributions by 15.4% to 1.5 cents per share. This marked the
seventh consecutive annual dividend increase for the company. Yield: 0.2%
Exterran Partners, L.P. (NASDAQ: EXLP ) provides natural gas contract operations
services to customers in the United States. This master limited partnership
raised quarterly distributions to 48.75 cents per share. Exterran Partners has
raised distributions for five years in a row. Yield: 7.9% Noble Corporation
(NYSE: NE ) operates as an offshore drilling contractor for the oil and gas
industry worldwide. This dividend stock raised quarterly distributions by 16.9%
to 15.2 cents per share. This marked the eighth consecutive annual dividend
increase for the company. Yield: 1.7% The dividend increases of these companies
beat the pension raises that Social Security has provided during the past few
years. Full disclosure: Long EMR, ADM For more information visit
DividendGrowthInvestor.com

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