1 Dividend Stock to Help You Fight Inflation

Inflation is a problem in the U.S. The Consumer Price Index, a measure of the change in prices for some common goods and services, rose by 6.2% in the 12-month period ending Oct. 31. That's well above the U.S. Federal Reserve's long-term inflation target of 2%. Inflation chips away at our purchasing power, and that's why focusing solely on holding cash is not the best strategy. Investing in solid dividend-paying stocks can help counter the effects of inflation. 

While partaking in the stock market has historically been one of the best ways to grow the average person's capital, dividend stocks take this to a whole new level. Here's one way of seeing this: In the past 10 years, the S&P 500 rose by 270.5%. The index's total return, which assumes that dividends are reinvested, was 352.9% over the same period. There are plenty of excellent dividend stocks on the market; one great option to consider is pharma giant AbbVie (NYSE: ABBV). Let's see why this drugmaker could be an excellent addition to your portfolio. 

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Source Fool.com