Inflation is on the march again - Here's how to beat it

Inflation is on the march again - Here's how to beat it By John Kingham One of the things I like most about dividend investing is that there's a good chance the income will grow faster than inflation. Take the FTSE 100's dividend as an example. CPI inflation since 1986 has run at an annualised rate of 2.6% per year, whereas the FTSE 100's dividend has grown by an annualised rate of 4.9% over the same period. So the index's dividend has grown by 2.3% a year even after adjusting for inflation (and of course there have been substantial capital gains since 1986 as well). Passively investing in a FTSE 100 tracker is one way to access the inflation-beating nature of dividend income. However, as an active investor I prefer to pick individual dividend-paying stocks in an attempt to get a market-beating dividend yield today and market-beating dividend growth tomorrow… Click Here To Read The Full Story The Master Investor Market Report The FTSE 100 closed the day at 7,000.06, an increase of 52.51 points. The FTSE 250 rose 201.91 points to finish at 17,994.41. The FTSE All Share climbed 30.30 points to finish at 3,804.24. The FTSE AIM All Share ended the day at 823.77. Shares in fashion house Burberry (BRBY) dropped by 7.21% to 1,403p after the company reported a 4% drop in revenues for the six months ended 30th September as retail growth failed to fully offset declines in wholesale and licensing incomes. Management said that full-year profit expectations remain unchanged, despite the fact that they will receive a significant boost from the change in exchange rates. Check out our brand-new October issue! Click HERE to read. Housebuilder Bellway (BWY) increased its revenues for the financial year ended 31st July by 26.9% to £2.24 billion. Pre-tax profits shot 40.6% higher to £497 million as the company improved its gross margins by 150 basis points. Management said that trading had been resilient through recent months despite uncertainty around leaving the EU, and the long run outlook remains positive. The shares climbed 6.04% to 2,386p. Online clothing outfit ASOS (ASC) grew its sales by 26% over the course of the year ended 31st August, but retail gross margins dropped by 30 basis points to 48.5%. Profits before tax fell 31% to £32.7 million as the company discontinued its Chinese operations and accounted for the costs of settling a trademark dispute. The shares fell 8.8% to 4,861p. Tomorrow's news today Softcat (SCT) will publish its final results. Quote of the day "My interest is in the future because I am going to spend the rest of my life there." - Charles Kettering Latest Stories Royal Mail: About to retest year highs By Zak Mir It may be the case that the "Posties" rejecting the chance to sell their shares in Royal Mail (LON:RMG) is a decent buy signal for the stock on top of the technical plus points… Click Here To Read The Full Story House builder Berkeley Group can bounce back from Brexit By Robert Stephens Despite the Brexit vote, house builders remain an attractive investment proposition. With its high, well-covered yield and low valuation, Berkeley is a star buy for the long term in my opinion... Click Here To Read The Full Story Supergroup: Sterling weakness points to below 1,200p By Zak Mir Fashion retailer Supergroup (LON:SGP) could very well become one of the trendy proxies for those looking to short stocks harmed by the weakness of the Pound.… Click Here To Read The Full Story How to inflation-proof your portfolio By Nick Sudbury There is a growing feeling that UK inflation could pick up dramatically over the next few years. You can see this from the increase in the five-year break even rate, which is based on the yield difference between conventional gilts and those linked to the RPI… Click Here To Read The Full Story The FCA is useless By Evil Knievil J-C Juncker thinks the EU should be "intransigent" towards Britain. Be it noted that the EU does not however feel minded to be intransigent towards itself …     Click Here To Watch The Video Join the movement on social media: Copyright 2016 Master Investor Ltd, All rights reserved. You are receiving this email because you opted in at our website. If a Daily Bulletin is too frequent, why not opt in to our once weekly mailing list for a round up of the week's news straight to your inbox. Once Weekly Round-Up Our mailing address is: Suite 88, 22 Notting Hill Gate, London W11 3JE Master Investor is a trading name of Master Investor Limited. Material contained within Master Investor Magazine and its website is for general information purposes only and is not intended to be relied upon by individual readers in making (or refraining from making) any specific investment decisions. Master Investor Ltd does not accept any liability for any losses suffered by any user as a result of any such decision.

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