3 Dividend Stocks That Are Crushing Inflation

Core Insights - Inflation is described as a significant threat to wealth, with an annual rate of 2.9% as of September, and a cumulative increase of about 25% since February 2020 [2][3] Company Analysis - McDonald's has increased its dividends from $1.25 to $1.77 per share since 2020, marking a 41.6% increase, which surpasses the 25% inflation rate during the same period [4] - The company boasts a dividend yield of 2.36%, higher than the S&P 500 average of 1.25% [4] - McDonald's has a strong history of dividend growth, having raised its dividend annually for 49 years, including a 6% increase planned for 2024 [5] - The payout ratio stands at 59.8%, indicating a sustainable dividend policy while allowing for expansion plans, such as the "Accelerating the Arches" initiative to open approximately 10,000 new restaurants by 2027 [5] - Despite a slight decline in earnings by 1.47% in 2024, McDonald's has opened 1,600 new stores and reported a 3.8% increase in global comparable sales, with earnings rising by 11.4% year-over-year [7] - The company is well-positioned to continue its dividend growth, potentially achieving a 50th consecutive year of increases in 2025, likely outpacing inflation once again [7]