FX.co ★ Long-term hedge against inflation: 3 high-dividend companies

McDonald’s

McDonald’s is perhaps the most popular chain of fast-food restaurants in the world. For many years, the company has been providing financial rewards for its investors. The firm started paying dividends in 1976. Investors see the size of their dividends rising on a yearly basis. The share value of McDonald’s is estimated at $244.01 per unit. With the current share price, the restaurant chain’s dividend yield amounts to 2.26%. McDonald's is known for its high competitiveness in the global market, reliable financial policy, and guaranteed dividend payments. The company withstood the COVID-19 pandemic. It is now actively expanding sales. In April 2022, McDonald’s revenue skyrocketed owing to rising prices in the United States and stronger international sales. Quarterly dividend payments at McDonald's are $1.38 per share. Having a market capitalization of $279 billion, the company pays its shareholders 70% of its profits.

Home Depot

Home Depot, a popular home improvement retailer, also guarantees stable dividends. The company is now actively expanding its online business and tracking the shift in customers’ preferences. Right now, the home-improvement chain trades at around $293.57 per share. Home Depot has recently revised its annual earnings forecast upward amid rising sales and strong demand for home improvement products. Experts see the company as a reliable dividend payer. Over the past 5 years, Home Depot’s quarterly dividends have grown by 22% year-on-year. In 2022, the retailer has a dividend yield of 2.64% and a market capitalization of $76.6 billion. As much as 50% of the company’s revenue currently goes to dividend payments

Bank of Nova Scotia

The Bank of Nova Scotia is Canada’s leading bank in terms of return on investments. Experts consider the shares of Canada's third-largest bank an excellent addition to any long-term investment portfolio. The Bank of Nova Scotia’s history is impressive: it has been paying dividends to shareholders since 1833. In May 2022, its shares traded at $65.36 per unit. Owing to its growing profits, the Bank of Nova Scotia increased its dividends 43 times in the past 45 years. The company has the most diversified portfolio among Canadian banks. The lion's share of its revenue comes from abroad. The decision of Brian Porter, Scotiabank's Chief Executive Officer, to reorganize the bank’s international division helped boost the profit from banking operations by 27%. The rise came amid an increase in mortgage and commercial loans as well as higher commissions. The bank enjoys a 4.91% dividend yield and has a market capitalization of $76.6 billion.