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If a that stock over time covers inflation and pays a dividend, absolutely.
by planteen 10y ago
If a that stock over time covers inflation and pays a dividend, absolutely.
- jdavis703 10y agoAt that point wouldn't bonds make more sense? Seems like the risk vs. reward balance is skewed the wrong way if you own a piece of stock that stays flat.
- tedunangst 10y agoIf inflation shoots up, your bond will have the same payout but one can at least hope that dividends rise accordingly.
- coredog64 10y agoOn the flip side, if the company goes bankrupt, bond holders are at or near the front of the line to be made whole.
- wefarrell 10y agoYou're leaving beta. Any stock that fluctuates with the market is expected to have a much higher return than inflation, and with good reason.
- dlubarov 10y agoPresumably the parent meant a stock whose share price tracks inflation in spite of its dividend. So if you reinvest the dividend, you beat inflation and potentially beat the market, depending on the dividend yield.
- deleted 10y ago[deleted]