Avoid These 2 Stocks And Buy This 11% Yielding World-Beater Instead

Posted On August 29, 2022 3:15 am
By: Dividend Sensei

Inflation may have peaked, but PIMCO and other analysts warn that inflation could remain high for many years, potentially causing bonds to suffer.

If a 60/40 stops working for several years, hedging your portfolio is a prudent option.

Gold (GLD) and commodities (DBC) are the historical stagflation hedges, but gold is down 46% since 1980, and commodities have delivered -1% real returns for the last 100 years.

This 11% yielding stagflation hedge is the Vanguard of hedge fund ETFs, delivering better returns than 85% of peers, with lower costs and exceptional stagflation hedging power over the last 3 years.

It’s beaten its peers by 5% annually, thanks to using the consensus of the top 20 hedge funds in the world, and is up 24% YTD.

It could deliver 9% to 10% long-term returns. As part of a diversified and prudently risk-managed balanced portfolio, it can boost long-term returns, increase yield significantly, and reduce peak market crashes by 66%.

For anyone comfortable with its risk profile, this 11% yielding world-beater is the best stagflation-fighting stock I’ve found so far.

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About author

Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I'm a proud co-founder of Wide Moat Research, Dividend Kings, and the Intelligent Dividend Investor. My work can be found on Seeking Alpha, Dividend Kings, iREIT, and the Intelligent Dividend Investor. My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives. With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams and achieving long-term financial goals.