High yields stocks provide a passive income, but investors should be aware of inflation; Dividend investors who once considered stocks as high yield when inflation was low would have to revise their expectations with higher inflation.
Walmart’s stock remains relatively cheap despite outperforming the S&P 500 over the past five years by 137%. Walmart has a forward P/E ratio of 23.3. Moreover, Walmart has been paying and increasing its dividend for 47 consecutive years, making it a Dividend Aristocrat.
Many companies are facing pressure from rising costs. Still, ExxonMobil is benefiting from soaring oil prices. Due to high inflation levels, it may remain one of the most successful performers if the stock market moves into bear-market territory.
Abbott has the most global exposure of the companies on this list, with 69% of its sales coming from international markets in Q3. Even with a strong dollar, company executives think the Chinese in-vitro diagnostics market will grow by more than 15% annually through 2022.
Stocks of consumer goods makers do better during a market downturn. Clorox (CLX) manufactures household cleaning products and is the best example. Its brands include bleach and Glad trash bags. Thus, Clorox enjoyed annual sales growth of 4.5% from 2008 to 2010.