3 Dividend Stocks Outperforming Inflation
Warren Buffett famously likened inflation to a "gigantic corporate tapeworm"—eroding real wealth while creating the illusion of profit. With U.S. inflation up ~25% since February 2020, nominal dividend hikes below that threshold represent Pyrrhic victories for income investors.
McDonald's (MCD) exemplifies true dividend growth, boosting payouts 41.6% since 2020—far outpacing inflation. The fast-food titan's 2.36% yield now doubles the S&P 500 average, supported by 49 consecutive years of increases and a sustainable 59.8% payout ratio. This performance demonstrates how select blue chips can transform dividends into inflation-resistant cash flows.