• US inflation is currently 6 percent
• Relying on high-yield stocks
• AGNC Investment & The Williams Companies
The corona pandemic and the subsequent war in Ukraine are currently causing some uncertainties. As JPMorgan CEO Jamie Dimon puts it, “Russia, Ukraine, oil, gas, war, migration, trade, China. These are all uncertainties that are impacting the stock business right now.”
US inflation remains high
US inflation peaked in June 2022 at 9.1 percent. The US Federal Reserve has already raised the key interest rate eight times in the fight against high inflation since its interest rate turnaround in March last year. The high inflation is currently declining somewhat, but it was still 6.0 percent in February 2023.
The US Federal Reserve has set itself the goal of bringing inflation back to a rate of 2 percent. According to “TipRanks”, however, Dimon does not assume that this aim could be achieved in the foreseeable future. Investors should therefore focus on dividend stocks with high yields. Because these grant shareholders a steady income, reliable payments and inflation-boosting returns.
AGNC Investment stock
AGNC Investment has long been known for its high-yield payments, according to TipRanks. The company has a $59.5 billion portfolio of high-quality securities. This can be seen from the results of the fourth quarter of 2022. Here, a net income per ordinary share of 93 cents was achieved. The forecast was 66 cents.
The company’s dividend payment is worth mentioning. AGNC Investment pays dividends monthly instead of quarterly, offering shareholders more frequent payouts. The dividend of 12 cents per common share adds up to $1.44 per share annually, yielding an impressive 13.3 percent.
The Williams Companies
Williams Companies is engaged in the US natural gas industry and operates a network of natural gas collection and storage facilities, processing plants and transportation pipelines. The company recently published its results for the full year 2022. Annual sales of 10.9 billion US dollars were achieved. Earnings per share are $1.67.
According to TipRanks, the company was able to guarantee full funding of the common stock dividend, which was even increased by 5.3 percent. While still below current inflation figures, it is about three times the average payment found at companies listed in the S&P 500.
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