We are concerned about inflation because it causes higher input costs for companies. In turn, greater expenses put downward pressure on margins making companies less profitable.
Besides good performance during a period of high inflation, Coca-Cola is a long-time dividend stock. It has paid one since 1920 and has increased it for more than 60 consecutive years.
Investors should look at IBM for its dividend yield, reasonable P/E ratio of 14.1X, and improved outlook. Few blue chip stocks offer as high a dividend yield as IBM.
It is one of the best stocks for investors to pick to fight inflation because gas prices typically surge during high inflation.