By: Dividend Sensei
Inflation is at 30-year highs, and many investors fear the impact on their nest eggs if high inflation doesn’t prove transitory.
Stocks in general are the best inflation hedge in history, but the market is 29% overvalued and expected to deliver just 30% total returns over the next five years.
Fortunately, it’s always a market of stocks, not a stock market, and inflation hedging blue-chips are always on sale if you know where to look.
Here are three inflation hedging blue-chips poised to benefit from higher inflation that I’ve invested nearly $75,000 into in my retirement portfolio.
This inflation hedging blue-chip is a basic materials supplier that has several growth catalysts that are expected to deliver 18.5% CAGR growth and 106% total returns over the next five years.
Next is my favorite 7% yielding Ultra SWAN utility, and inflation protection in its contracts protects 98% of its cash flow. Analysts expect this global aristocrat to deliver about 120% total returns in the next five years.
Finally here’s an insurance blue-chip that yields a very safe 4.5% and analysts expect 10.5% CAGR long-term growth and 96% 5-year total returns even if interest rates merely return to 2010s levels.