Inflation made the headlines through most of last year, for all the worst reasons: it ran far too high, peaked above 9% in June, and the inflationary pressures pushed down hard on stock markets. The Fed jacked interest rates up their highest level in over a decade, risking recession to fight the rise in prices.
Today, inflation is still in the headlines, although the tone has shifted. The annualized rate is trending downward; the December number came in at 6.5% year-over-year. While this is good news, some doubts remain.
“To the upside, inflation of sticky prices like violin lessons, veterinarian fees, car repairs, and other services provided by small businesses and sole proprietors was still accelerating in late 2022—and that stickiness could make inflation rebound later this year or in 2024 as growth gets back on track,” said Comerica Bank chief economist Bill Adams in a recent note.
A possible rebound in the pace of inflation immediately suggests defensive portfolio moves for retail investors, especially into dividend stocks. These income-generating equities offer some degree of protection against both inflation and share depreciation by providing a steady income stream.
Against this backdrop, some Wall Street analysts have given the thumbs-up to two dividend stocks yielding of 7%, or even better. Opening up the TipRanks database, we examined the details behind these two to find out what else makes them compelling buys.
Enterprise Products Partners (EPD)
We’ll start with a midstream energy company, Enterprise Products Partners. Enterprise’s network of transport and storage assets connects the wellheads with the customers in the hydrocarbon sector; the company’s primary work is moving crude oil, refined products, natural gas, and natural gas liquids to where they’re needed. Enterprise has a network of assets, including pipelines, rail and road tankers, and barges, as well as refineries, processing plants, terminal points, and tank farms. These networks are centered on the Texas and Louisiana coasts, but extent up the Mississippi Valley and into the…