Want to Cash In on High Inflation Rates? Buy These 2 High-Yielding Dividend Stocks.

Inflation Data and Market Impact - The Consumer Price Index (CPI) rose by 0.5% month over month and 3% year over year, exceeding expectations of 0.3% and 2.9% respectively, and above the Federal Reserve's target of around 2% [1] - The Producer Price Index (PPI) also increased by 0.4%, higher than the anticipated 0.3% [1][2] Companies Benefiting from Inflation - W. P. Carey (WPC) and Brookfield Infrastructure (BIPC) are positioned to benefit from inflation due to their business models that allow for faster cash flow growth [3] - W. P. Carey has 51% of its leases linked to CPI, enabling rent growth during inflationary periods, with same-store rent growth above 2.6% last year [5][7] - Brookfield Infrastructure derives about 70% of its funds from operations (FFO) from assets indexed to inflation, estimating an annual FFO per share growth of 3% to 4% due to inflation [9][11] W. P. Carey Specifics - W. P. Carey focuses on properties with long-term net leases that include rent escalators, insulating it from inflation impacts [4] - The company has shifted its investment strategy to properties with inflation-linked rents, including a $191 million investment in a 19-property industrial and warehouse portfolio [6] - The REIT's strategy positions it for above-average rent growth and potential dividend increases, currently yielding 6.1% [7] Brookfield Infrastructure Specifics - Brookfield Infrastructure operates across various sectors, with 85% of its FFO coming from contracted or regulated assets, benefiting from stable cash flows [8] - The company achieved 7% organic FFO growth last year, driven by inflation and strong tariff increases in its transportation portfolio [10] - Management anticipates over 10% annual FFO per share growth, supporting 5% to 9% annual dividend increases, with a current yield of over 4% [11] Conclusion - Both W. P. Carey and Brookfield Infrastructure are well-positioned to capitalize on elevated inflation rates, with their business models supporting growth in cash flows and dividends [12]