Let’s first face the inflationary facts, painful though they most definitely are:

• Economists expected inflation in June to rise 8.8% year-over-year, an already unacceptable number.
• Instead, it came in at 9.1%, even worse than May’s 40-year high of 8.6%.
• Month-over-month, inflation ticked up 1.3%, also worse than economist expectations of 1.1%.
• “Core CPI,” which excludes the very elements hurting consumers so much right now (i.e., food and energy) rose 5.9%.

And here’s one conclusion: The Fed will probably raise interest rates by 75 basis points next month.

Yet even in the face of that economic devastation, one aspect of the equities game seems fully unaffected. By that, I mean dividends have been climbing steadily in the last decade… and just hit a new record despite everything.

Let’s turn to The Wall Street Journal as usual:

“The companies in the S&P 500 paid out a record $140.6 billion in dividends in the most recent quarter, according to S&P Dow Jones Indices. That’s up from $137.6 billion in the first three months of the year and $123.4 billion in the same quarter last year.

“Annual dividend payouts have notched new highs every year for a decade, excluding a slight decrease in 2020. Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, said he expects dividends to set new records in the current quarter and for the year as well.”

Moreover, some estimates indicate 2022 may see a more-than-10% jump in payments from last year’s record $511.2 billion. This would mark the first increase of its kind since the Obama era.

Corporations that pass profits to shareholders usually feature robust revenues from industries like utilities, telecommunications, and – of course – real estate investment trusts (REITs). As such, consumers can usually rely on them no matter the economic circumstances.

I’ve long said that safe high-yield assets are some of the best ways to fight inflation. And in light of today’s latest report, that’s a story I’m sticking to – both in writing and in practice.

More Non-REIT News to Know About 

I’ve admitted before that I find Elon Musk to be an entertaining figure. That’s why I’ve covered him before more than once: because of that amusement factor.

And these days – even though I have nothing to do with Twitter (TWTR) and no plans to change that association, or lack thereof – the drama is just too good to pass up.

By now, most of us know Musk officially revoked his offer to purchase the social media platform for $44 billion. Essentially, he accused it of fraud at worst and unacceptable levels of ignorance at best concerning the accuracy of its user count.

In response, Twitter threatened to take legal action if he didn’t proceed as initially planned. It sent Musk an official letter calling his declaration “invalid and wrongful,” adding:

“Twitter has breached none of its obligations under the agreement, and Twitter has not suffered and is not likely to suffer a company material adverse effect.”

Its legal team also stated that the agreement is not, in fact, terminated; the bank and equity commitments remain in effect, and Musk must obey his obligations. As such:

“As it has done, Twitter will continue to provide information reasonably requested by Mr. Musk under the agreement and to diligently take all measures required to close the transaction.”

How will it all turn out?

I have no idea, but you’d better believe I’ve got my popcorn in hand!

The World According to REITs 

When we talk about record dividends like the ones we opened with, you know what I’m going to say…

One of the best places to look is in the REIT market.

Since REITs have to pass along most of their profits, they’re excellent ways to pad your portfolio against economic uncertainty. Knowing that, I want to focus on one particularly promising landlord today: Innovative Industrial Properties (IIPR).

The company – which specializes in leasing industrial space to medical marijuana operators – is one of the best examples of dividend growth on the market today.

The stock, for its part, skyrocketed last year as one of the hottest REITs around. We’ve profited off that price before but, again, that’s not the only thing to like about it.

Today, its dividend return is just over 5%. But shortly after its IPO, that figure was 3.3%. In just a few years, this REIT has seen 12 dividend increases in the past few years.

That’s driven a 23% return on investment (ROI) for initial investors.

Now, here’s a very important note of caution: Shares peaked last year at $281. Since then, they’ve crashed to about $114 at last check. That’s why we consider it to be a Speculative Buy.

But for those who are in a good position to take on a bit of risk – with “a bit” meaning a smaller allocation than normal – opening a position at these prices could yield something stellar all over again.

Author’s Note: If you do determine this stock is right for you, make sure to purchase it at a smart entry point. Even the best of companies can burn you badly by buying in at inflated prices.

More By This Author:

The Fall Before The Storm
Elon Musk Made A Twit Out Of Someone (It’s Just A Matter Of Who)
So When You Say Recession…