Inflation Investments

Inflation will make a come back at some point and the reality is that it looks like its coming sooner rather than later. The following are investments that not only protect your money but grow it substantially during times of inflation.

1. Oil Stocks – Many of the large international oil company conglomerate are so well diversified that they can literally start with prospecting and develop it until itt gets to your local gas pump. In addition to increasing during times of inflation, they also pay a nice fat dividend. It is not uncommon to have dividends of 3-7% while their revenues just increase every year.

2. Pipeline Stocks – A pipeline is to oil what a railroad is to trains, it is the life blood of the industry. Their income is not only dependable but their yields are fat like a pig, 7-9%. A nice steady income with increasing revenues and inflation protection is just what the doctor ordered.

3. Water Companies – Again, water is a commodity that will always be in demand. These stocks have fat dividends and nice steady growth although not great growth.

4. Electric Companies – With electric de regulation in most states in effect many companies can compete across the entire U.S. Demand is steady and while not growing much they pay a high dividend and are mostly insulated from inflation.

5. Real Estate – Although real estate has gotten a bad reputation lately it still is a good investment during inflation. It is no coincidence that with interest rates and inflation under 2% that real estate has not done well but when inflation rises, watch out.

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