Inflation is the thief of purchasing power. It occurs when money increases faster than the economy. The average inflation in USA in more than 100 years is officially 3.3% (probably much more). It will be one of the major factors driving the future outcome of our economy and it´s the reason we cannot hold our wealth in money market schemes. To fight inflation we have chosen dividends.

Dividend Payout Ratio means the percentage of earnings paid to shareholders in dividends. The long-term total return from the stock market is between 7% and 10% where dividend yield provides between 2.5% (when P/E is above 20) and 5%. The advantage of using dividends is that usually companies take care of inflation in their prices. We are not selling the stocks, only getting the dividends.

With this web we will slowly build an audited portfolio focusing in high dividends with strong fundamental basis. On the right, you can click to see our holdings.

Mainly, we will choose US, British, German, and Canadian stocks, all of them refered to their own currency, and some ETFs specialized in the Asian market.

We will split the purchases along 5 years to avoid one-time-buy risks. We will own more than 50 shares, so that the risk of bankrupcy is limited to less than 2%. In bearish markets, dividend stocks tend to be less volatile.