3 Stocks to Beat Inflation and Protect Your Wealth

Inflation is taking a bite out of your wallet. Your groceries are more expensive, and so are materials, labor, and freight for companies. Some companies can’t raise prices since consumers won’t pay them.

Instead, they must absorb the cost, and thus they are less profitable. In turn, lower profits usually mean lower stock prices.

However, some companies are doing well despite inflation and have pricing power. If you’re worried inflation might be affecting your stock portfolio, here are three stocks that may beat it.

Occidental Petroleum (OXY) is a large oil and natural gas exploration and production company operating around the world. Two years after the pandemic, oil prices have recovered and are now $100+ per barrel, and the average gas price is roughly $4 per gallon in the US. Consumers and businesses have no choice but to pay the higher costs.

Occidental Petroleum

This reversal of fortune probably means OXY will have an excellent year, deleveraging and returning cash to shareholders. The company increased the quarterly dividend rate to $0.13 from $0.01 per share and is buying back $3 billion in shares.

Rising interest rates, as the Federal Reserve tightens monetary policy, and rising inflation and uncertainty about the Ukraine crisis continue undermining the current stock market’s outlook. However, companies’ ability to use cash could reduce a few concerns of investors.

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The annual dividend rate is $0.52 per share, giving a forward dividend yield of 0.88%. The dividend is well covered by a payout ratio of ~7.2%.

The second stock to beat inflation is Walmart (WMT). The company remains the largest retailer in the world, with around 10,500 stores operating under the Walmart and Sam’s Club brands. In addition, the company has a presence in the US, Canada, Mexico, China, and other countries through joint ventures. Their total revenue was about $572.75 billion in fiscal 2022.

Walmart

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