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15 Great Income Stocks for Inflationary Times

By Marc Rapport - Jun 16, 2022 at 7:00AM
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15 Great Income Stocks for Inflationary Times

Stocks to help buffer your portfolio from inflation's blows

Inflation has raised its ugly head, and the stock market is taking a beating. But there are still opportunities out there. Buying shares of strong companies in inflation-resistant sectors such as real estate, energy, and consumer staples is a great way to invest now for recovery ahead.

Many pay dividends, too, which helps add to their allure. Income stocks often outperform growth stocks in tough times, and they often have long-term superior returns, too. Here are some to consider.

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1. Realty Income

Realty Income (NYSE: O) is a real estate investment trust (REIT), and it's a dividend machine. A massive portfolio of about 11,000 properties -- primarily retail -- generates the rental income to continue building on a record of 621 monthly dividend payments. Right now, this stock is yielding about 4.4% at a share price of about $66.

ALSO READ: Real Estate Investment Trusts: What They Are and How to Invest in Them

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Oil refinery.

2. ExxonMobil

ExxonMobil (NYSE: XOM) is one of the world's largest producers of natural gas and crude oil, petroleum products, and specialty chemical, and is benefiting from soaring prices. The company has more than 20,000 operating wells and is pumping out dividends at the rate of about 3.4% at a share price of about $102.

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A Target storefront.

3. Target

Target (NYSE: TGT) stock has taken a terrible beating of late as the company warned it would be slashing prices, and profits, to clear itself of excess inventory.

But this retail giant, operator of about 2,000 stores, has a record of 50 straight years of dividend increases and is currently yielding about 2.3% at a share price of about $154, which might make this Dividend Aristocrat look like a bargain a couple years from now.

ALSO READ: S&P 500's Best Dividend Aristocrats

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4. LTC Properties

LTC Properties (NYSE: LTC) owns about 180 senior housing and long-term care properties in 27 states. This REIT is beating the odds of late with a stock price that's actually up by about 13% so far this year, and its stock is yielding nearly 6%, which is pretty good considering yields go down as share prices go up. You can scoop some up now at about $38 a share.

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Real estate agent showing a customer a commercial property.

5. Blackstone Mortgage Trust

Blackstone Mortgage Trust (NYSE: BXMT) specializes in commercial real estate lending in North America, Europe, and Australia and operates as a mortgage REIT. Part of the giant Blackstone alternative investment company, Blackstone Mortgage Trust is yielding about 8% -- roughly keeping up with inflation -- at a share price of about $30.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

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People dining in a restaurant.

6. Sysco

Sysco (NYSE: SYY) doesn't sell food directly to consumers, but there's a reason you see its trucks everywhere, often outside some of your favorite eateries. The company is one of the biggest distributors of food and food-related products out there, with more than 330 distribution centers in 90 countries.

People need to eat, inflation or not. Sysco stock is trading at about $82 a share and yielding about 2.2%. And with a record of 54 annual payout increases, this is a Dividend King.

ALSO READ: Dividend Kings of 2022

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A tobacco field.

7. Altria Group

Altria Group (NYSE: MO) produces and sells tobacco products and has for a long time, with its predecessors dating to the 1820s. The Virginia-based company also owns a big chunk of one of the major producers of legal marijuana in Canada. Altria has raised its dividend for a dozen straight years and is yielding about 7.5% at a share price of about $48.

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Two people shopping for clothes.

8. Agree Realty

Agree Realty (NYSE: ADC) is another retail REIT, with about 1,400 properties in nearly every state of the union, most anchored by rock-solid big-box tenants.

A proven performer, Agree's stock has not taken the hit that most others have, and in fact, has been up year to date for a lot of 2022. Plus, it's yielding about 4% at a share price of about $69, making this a good choice for both passive income and future share price growth.

ALSO READ: Best Income Stocks for Passive Income

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A Verizon Wireless storefront.

9. Verizon Communications

Verizon Communications (NYSE: VZ) is a powerful brand name and high-performing stock and can be expected to keep producing income for shareholders as long as hundreds of millions of people continue using their smartphones and multiple other streaming devices. Verizon stock is currently selling for about $50 a share and yielding about 5%.

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Looking up at a mobile tower.

10. Crown Castle International

Crown Castle International (NYSE: CCI) is a major landlord for Verizon and other large carriers and thousands of other leasers of space on Crown Castle's growing network of cell towers, small cell nodes, and fiber cables. After seven straight years of dividend increases, Crown Castle stock is paying at a rate of about 3.2% while selling for about $175 a share.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

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Chevron logo.

11. Chevron

Chevron (NYSE: CVX) is another of the blue chip gas and oil giants with a long record -- in this case, 35 straight years -- of dividend increases. Its stock is selling now for about $176 a share and yielding about 3.1%, and with high oil and gas prices, buying this stock can at least give you some income-producing skin in this inflationary game.

ALSO READ: Investing in Top Oil Stocks

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A long line of USPS trucks.

12. Postal Realty Trust

Postal Realty Trust (NYSE: PSTL) is a different animal than the others in this list. This REIT has only been public for a few years but is in a single-tenant niche that should do well both against inflation and recession, if that were to follow.

Postal Realty owns post offices. More than a thousand of them. The company's stock is selling for about $15 a share and yielding about 5.9%, so it's already delivering the goods and should do well going forward, too.

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Person underneath big electric towers and lines.

13. NextEra Energy

NextEra Energy (NYSE: NEE) provides electricity to more than 10 million people in Florida and generates and distributes electric power to other wholesale customers across the continent. This Dividend Aristocrat has bumped up its payout for 28 straight years and is now yielding about 2.2% at a share price of about $76.

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A person working in a tape factory.

14. 3M

3M (NYSE: MMM) might best be known for Post-it Notes and different kinds of tapes, but it's also a major global producer of industrial abrasives and finishes, reflective signage, and much more. 3M also is a Dividend King, with a share price of about $140 that's good for a yield of about 4.1% after 65 straight years of dividend increases.

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A group of people in a planning meeting.

15. Vanguard Real Estate ETF

The last entry in this list of income stocks is not a company. It's a collection of them. The Vanguard Real Estate ETF (NYSEMKT: VNQ) is an exchange-traded fund that owns about 160 different REITs, providing exposure to -- and income from -- a diverse range of industries. VNQ stock is yielding about 3.1% and trading for about $93 a share.

5 Stocks Under $49
Presented by Motley Fool Stock Advisor
We hear it over and over from investors, "I wish I had bought Amazon or Netflix when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" It's true, but we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Click here to learn how you can grab a copy of "5 Growth Stocks Under $49" for FREE for a limited time only.

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No guarantees, but you can count on some income along the way

While there's no guarantee the market will recover, there is some history here to indicate it probably will: The stock market has returned a 10% average annual rate of return for nearly 100 years.

Buying shares of great companies that are in essential businesses is a long-proven way to ride out down-market storms, including those caused by inflation, and it can make the sunnier days ahead for your investment portfolio shine even brighter when they arrive.

Marc Rapport has positions in 3M, Agree Realty, Blackstone Mortgage Trust, Postal Realty Trust, Inc., and Vanguard Real Estate ETF. The Motley Fool has positions in and recommends Crown Castle International, NextEra Energy, Target, and Vanguard Real Estate ETF. The Motley Fool recommends 3M and Verizon Communications and recommends the following options: long January 2023 $50 calls on Sysco and short May 2022 $85 calls on Sysco. The Motley Fool has a disclosure policy.

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