High dividend stocks usually perform well during economic cycles and may benefit from rising inflation. However, all stocks carry risks in the stock market. Therefore, investors can consider investing in a basket of stocks to diversify risk or select professional fund managers to invest in high dividend stocks for better returns during inflation.
These stocks typically pay out more profits as dividends to shareholders and are priced lower, making them attractive as value investments. While high dividend stocks may offer relatively higher returns, they also come with higher risks. It is important to note that investing in individual stocks carries significant risks, so investors may want to spread their risk by investing in a diversified portfolio of stocks or seek advice from professional fund managers to achieve better returns during inflation.