Protect your portfolio from inflation with these investments

If you're worried about inflation rearing its ugly head next year, you should probably worry about more likely catastrophes, such as being eaten by bees. Looking out a bit further — say, 2013 — inflation may become a worry. But not before then. Still, it's good to be prepared, and if you think soaring prices may smack your portfolio, build one devoted to whipping inflation eventually.

Dividend-paying stocks. Most companies would welcome a chance to raise prices. When they can, dividend-paying companies will be able to increase their dividends. One good place to look for dividend-paying stocks is Standard & Poor's Dividend Aristocrats. These companies have raised their dividends every year for at least 25 years. High-quality dividend-paying stocks are the usual hunting grounds for equity-income funds.

Source: USA Today

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