While the recent inflation data is undoubtedly far better than the 9.1% increase printed in the summer of 2022, many Americans still face the reality that prices for everyday necessities like food, energy, and other necessities remain very elevated. Inflation gradually reduces the buying power of consumer dollars. The best way to beat the current persistent inflation is to invest in businesses unaffected by rising prices.
Worried investors concerned over the sticky inflation need to look to high-yield dividend shares in the energy, healthcare, and consumer goods sectors for companies that will continue to outperform in an ongoing, albeit lower, inflation environment. We screened our 24/7 Wall St. inflation stock database and found four stocks that pay big, dependable, high-yield dividends that can continue to deliver regardless of price increases. All are rated Buy at top Wall Street firms we cover.
Why do we cover inflation-resistant dividend stocks?
Dividend stocks, especially those immune to input price increases, provide investors with reliable streams of passive income. Passive income is characterized by its ability to generate revenue without requiring the earner’s continuous active effort, making it a desirable financial strategy for those seeking to diversify their income streams or achieve financial independence.
Conagra Brands
Conagra Brands is an American consumer packaged goods holding company.
This consumer packaged food giant is a very safe idea that pays a stellar 5.60% dividend. Conagra Brands Inc. (NYSE: CAG | CAG Price Prediction) and its subsidiaries operate primarily in the United States as a consumer packaged goods company.
The company operates through four segments:
- Grocery & Snacks
- Refrigerated & Frozen
- International
- Foodservice
The Grocery & Snacks segment primarily offers shelf-stable food products through various retail channels.
The Refrigerated & Frozen segment provides temperature-controlled food products through various retail channels.
The International segment offers food products in various temperature states through retail and food service channels outside the United States.
The food service segment offers branded and customized food products, including meals, entrees, sauces, and various custom-manufactured culinary products packaged for restaurants and other food service establishments.
The company sells its products under these well-known brands:
- Birds Eye
- Marie Callender’s
- Duncan Hines
- Healthy Choice
- Slim Jim
- Reddi-Wip
- Angie’s
- BOOMCHICKAPOP
Barclays has an Overweight rating with a $33 target price.
Dominion Energy
Dominion Energy is an integrated energy utility. It offers electricity, natural gas, and related services.
Many of the Wall Street firms we cover are still very positive on utilities, and this company pays a strong 4.71% dividend. Dominion Energy Inc. (NYSE: D) operates through four segments:
- Dominion Energy Virginia
- Gas Distribution
- Dominion Energy South Carolina, and
- Contracted Assets
The Dominion Energy Virginia segment generates, transmits, and distributes regulated electricity to residential, commercial, industrial, and governmental customers in Virginia and North Carolina.
The Gas Distribution segment engages in:
- Regulated natural gas gathering
- Transportation
- Distribution and sales activities
- Distributes nonregulated renewable natural gas
This segment serves residential, commercial, and industrial customers.
The Dominion Energy South Carolina segment:
- Generates
- Transmits
- Distributes electricity and natural gas to residential, commercial, and industrial customers in South Carolina.
The company’s portfolio of assets included approximately:
- 30.2 gigawatts of electric generating capacity
- 10,500 miles of electric transmission lines
- 85,600 miles of electric distribution lines
- 94,200 miles of gas distribution lines
- Dominion serves approximately 7 million customers
Barclays has an Overweight rating with a $58 price objective.
Mondelez
Mondelez International is an American multinational confectionery, food, holding, beverage, and snack food company based in Chicago.
This consumer sector giant makes good sense for conservative accounts and pays a 3.03% dividend. Mondelez International Inc. (NASDAQ: MDLZ) manufactures and markets snack food and beverage products worldwide.
The company offers biscuits, including cookies, crackers, and salted snacks; chocolates, gums, and candies; powdered beverages and coffee; and cheese and grocery products.
Its primary brand portfolio includes:
- Oreo
- Ritz
- LU
- CLIF Bar
- Tate’s Bake Shop biscuits and baked snacks
- Cadbury Dairy Milk, Milka, and Toblerone chocolate
Mondelez International sells its products to:
- Supermarket chains
- Wholesalers
- Supercenters
- Club stores
- Mass merchandisers
- Distributors
- Convenience stores
- Gasoline stations
- Drug stores
- Value stores
- Retail food outlets through direct store delivery, company-owned and satellite warehouses, distribution centers, and other facilities, as well as independent sales offices and agents
Mondelez International was formerly known as Kraft Foods and changed its name in October 2012.
Goldman Sachs has a Buy rating to go with a $60 price target.
Pfizer
This American multinational pharmaceutical and biotechnology corporation is headquartered at The Spiral in Manhattan.
This top pharmaceutical stock was a massive winner in the COVID-19 vaccine sweepstakes but has been beaten down over the last few years as many are not getting boosters. Pfizer Inc. (NYSE: PFE) discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide and pays a hefty 6.71% dividend, which has risen yearly for the past 14 years.
The company offers medicines and vaccines in various therapeutic areas, including:
- Cardiovascular metabolic and women’s health under the Premarin family and Eliquis brands
- Biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Sutent, Inlyta, Retacrit, Lorbrena, and Braftovi brands
- Sterile injectable and anti-infective medicines and oral COVID-19 treatment under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, Panzyga, and Paxlovid brands
Pfizer also provides medicines and vaccines in various therapeutic areas, such as:
- Pneumococcal disease, meningococcal disease, tick-borne encephalitis
- COVID-19 under the Comirnaty/BNT162b2, Nimenrix, FSME/IMMUN-TicoVac, Trumenba, and the Prevnar family brands
- Biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands
- Amyloidosis, hemophilia, and endocrine diseases under the Vyndaqel/Vyndamax, BeneFIX, and Genotropin brands
Trading not far from its lowest split-adjusted level in thirteen years, the stock is an incredible bargain at current levels and pays a massive dividend.
Pfizer reported outstanding fourth quarter and full 2024 results. Full-year 2024 revenues were $63.6 billion, representing 7% year-over-year operational growth, while fourth-quarter revenues were $17.8 billion, reflecting 21% year-over-year operational growth.
Truist Financial has a Buy rating and a $32 target price.
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