2 Footsie dividend stocks to buy to beat inflation!

It’s harder than it’s been for decades for dividend stock investors to make a positive return. Here are two top Footsie stocks I’d buy to take the sting out of booming inflation.

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The Footsie is packed with terrific dividend stocks that can deliver robust passive income streams. But inflation is rising at its fastest pace for 40 years, making it more difficult for me to find shares to make a positive return in real terms.

The average FTSE 100 dividend yield sits at 3.7%. So investors like me need to do some scouting around to find strong stocks that provide inflation-beating yields. Here are two I’m considering buying today.

Inflation Is Coming

Inflation is out of control, and people are running scared. But right now there’s one thing we believe Investors should avoid doing at all costs… and that’s doing nothing. That’s why we’ve put together a special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… and better still, we’re giving it away completely FREE today!

Click here to claim your copy now!

Home comforts

I bought Footsie housebuilders to generate a strong long-term passive income. It’s my belief that Britain’s supply crunch will take years to resolve. And in this time, property prices will continue to shoot up, driving developer profits higher and higher.

Bank of England rate rises in response to inflationary pressures pose a threat to homebuyer demand. But I’m encouraged by the resilience of the market, despite the impact of these increases and falling confidence.

Government data today shows that average home values in the UK rose 9.8% year-on-year in March. The pace at which prices continue to hit new record highs (to £278,436 in March) leaves plenty of scope for the housebuilders to make big profits and continue paying big dividends to their shareholders.

A great passive income stock

This is why I’m considering adding Persimmon (LSE: PSN) to my own shares portfolio. I already own Barratt Developments and Taylor Wimpey. But the 10.8% dividend yield at Persimmon for 2022 makes it the best-paying developer on the FTSE 100 today. It also outstrips the pace at which inflation is currently increasing.

Persimmon said in late April that “demand remains strong” and that its order book stood at a robust £2.8bn. I’m expecting sales of its new-builds to remain robust amid weak ongoing availability of existing homes entering the market.

13.1% yields!

Diversfied miner Rio Tinto (LSE: RIO) is another FTSE 100 dividend stock with inflation-beating yields right now. For 2022, its divided yield sits at a whopping 13.1%. This is even bigger than Persimmon’s huge reading.

Rio Tinto looks set to profit from a variety of so-called ‘supertrends’ during the 2020s and beyond. This suggests to me it could deliver market-beating shareholder returns not just today but over the long term.

A FTSE 100 mining hero

Mining is an unpredictable business and catastrophes can occur at any time, hitting production. This is something to consider when assessing the profits potential of firms like Rio Tinto.

Still, it’s my opinion that the possible rewards of owning Rio Tinto’s shares outweigh these dangers. Demand for Rio Tinto’s copper, for instance, should rise strongly, in my opinion, as the green revolution takes hold. The highly-conductive metal is used to make renewable energy technology and electric vehicles.

Sales of its iron ore — a critical ingredient in steelmaking — is meanwhile expected to boom as infrastructure spending lights up across the globe. Rio Tinto also produces other critical commodities that whose demand will rise strongly over the next decade as the global economy grows.

Like Persimmon, Rio Tinto is a top inflation-beating FTSE 100 share I’d happily invest in today.

Inflation Is Coming: 3 Shares To Try And Hedge Against Rising Prices

Make no mistake… inflation is coming.

Some people are running scared, but there’s one thing we believe we should avoid doing at all costs when inflation hits… and that’s doing nothing.

Money that just sits in the bank can often lose value each and every year. But to savvy savers and investors, where to consider putting their money is the million-dollar question.

That’s why we’ve put together a brand-new special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation…

…because no matter what the economy is doing, a savvy investor will want their money working for them, inflation or not!

Best of all, we’re giving this report away completely FREE today!

Simply click here, enter your email address, and we’ll send it to you right away.

Royston Wild has positions in Barratt Developments and Taylor Wimpey. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Should you invest the value of your investment may rise or fall and your Capital is at Risk. Before investing your individual circumstances should be considered, so you should consider taking independent financial advice.

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