SOFI - Stick It to Sticky Inflation With These 3 Moneymaking Stocks
2024-04-28 06:44:00 ET
Higher inflation has been sticking around a lot longer than many expected. Instead of continuing to fall toward the Federal Reserve's 2% target, the latest inflation reading (as measured by the Consumer Price Index, or CPI) showed prices rising 3.5% year over year. That accelerated from the previous pace and exceeded market expectations.
While sticky inflation is bad for consumers and other parts of the economy, there are some beneficiaries. W.P. Carey (NYSE: WPC) , Federal Agricultural Mortgage Corporation (NYSE: AGM) , and SoFi Technologies (NASDAQ: SOFI) stand out to a few Fool.com contributors for their ability to capitalize on sticky inflation. Here's why they think these stocks are great buys for investors looking for ways to profit from surging inflation .
Matt DiLallo (W.P. Carey): W.P. Carey owns a diversified commercial real estate portfolio. The real estate investment trust (REIT) primarily focuses on owning single-tenant industrial, warehouse, and retail properties under long-term net leases with built-in rent escalations. The majority tie rent to inflation, with 38% uncapped CPI and 18% capped CPI, and most of the rest escalating rents at a fixed annual rate of 41%. Those leases supply it with very stable cash flow to support its high-yielding dividend, which was recently over 6%.
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Stick It to Sticky Inflation With These 3 Moneymaking Stocks