{"id":996,"date":"2022-04-25T10:45:00","date_gmt":"2022-04-25T14:45:00","guid":{"rendered":"https:\/\/www.bellvest.ca\/family-wealth-toronto\/resources\/the-benefits-of-dividend-growth-strategies\/"},"modified":"2025-09-17T16:45:46","modified_gmt":"2025-09-17T20:45:46","slug":"the-benefits-of-dividend-growth-strategies","status":"publish","type":"resources","link":"https:\/\/www.bellvest.ca\/family-wealth-toronto\/resources\/the-benefits-of-dividend-growth-strategies\/","title":{"rendered":"How Investors Can Beat Record Inflation and Rising Interest Rates \u2013 the Benefits of Dividend Growth Strategies"},"content":{"rendered":"<p style=\"text-align: justify;\"><!--more--><\/p>\n<p style=\"text-align: justify;\">Markets continue to contend with rising interest rates, inflation, supply chain pressure, and geopolitical tensions. This combination strengthens the case for investing in stocks that pay dividends. In uncertain times, investors can look to dividend growth strategies, which offer the potential to mitigate market risks while offering stability.&nbsp;<\/p>\n<p>At Bellwether, our investment process, known as the North American Dividend Growth Investing Strategy, mitigates risk and produces stable returns for investors during this period of rising inflation and interest rates. Dividend growth investments are often less volatile than the market and at least a portion of your annual return is \u201clocked in\u201d from the regular dividend income.<\/p>\n<p>To fully appreciate the benefits of a Dividend Growth Strategy, we\u2019ll illustrate how the strategy has held up during past interest rate tightening cycles.&nbsp;<\/p>\n<p><span style=\"font-weight: bold;\">Dividend Growth Strategies can mitigate the risk of inflation and rising interest rates&nbsp;<\/span><\/p>\n<p>According to research from BMO Capital Markets, during 1994, 2004, and 2016 Fed interest rate hike cycles, dividend growth strategies outperformed 3, 6, and 12 months after the initial hike. The companies that consistently grow their dividends during these times are also more likely to deliver strong returns when inflation is above 4%. &nbsp;<\/p>\n<p>Investors can benefit from investing in companies that have raised dividends and have strong yields. Additionally, they can also search for companies that have the potential to hike dividends faster than the S&amp;P\/TSX and S&amp;P500 indexes.&nbsp;<\/p>\n<p><span style=\"font-weight: bold;\">Dividend growth is an offensive strategy that also offers stability<\/span>&nbsp;<\/p>\n<p>During bouts of market volatility, dividend growth offers a source of stability that can outperform rising interest rates and inflation. Quarterly dividend payments can offer an additional source of income to help mitigate the risk of volatility and inflationary pressures. Additionally, by investing in companies that <a href=\"https:\/\/www.fidelity.com\/learning-center\/trading-investing\/inflation-and-dividend-stocks\" rel=\"noopener\">produce<\/a> a sustainable and growing dividend, investors can grow their income to keep up with inflation.&nbsp;<\/p>\n<p><span style=\"font-weight: bold;\">Investing in dividend stocks<\/span><\/p>\n<p>There are several ways to gain exposure to dividend-paying stocks.&nbsp;<\/p>\n<p style=\"text-align: justify;\"><span><br \/>1. &nbsp; &nbsp;<span style=\"font-weight: bold;\">Access managed funds\/portfolios<\/span>: Bellwether\u2019s North American Dividend Growth investment process identifies companies that have a history of increasing their dividends and are expected to continue to grow their earnings, cashflow, and dividends in the future. We actively monitor company and sector fundamentals, looking for opportunities for our dividend growth investment strategy. In short, we do all the heavy lifting for our investors so they can enjoy the benefits of our long and successful portfolio management experience. To learn more about our process, please contact us.&nbsp;<\/p>\n<p>2. &nbsp; &nbsp;<span style=\"font-weight: bold;\">Invest in Exchange Traded Funds (ETFs)<\/span>: there are various passive management funds that can provide investors with exposure to dividend growth stocks. We also offer an ETF portfolio option.<\/p>\n<p>3. &nbsp; &nbsp;<span style=\"font-weight: bold;\">Identify dividend-paying stocks<\/span>: For the more hands-on investor, the option to individually identify dividend growth stocks is also another way to invest in dividend stocks.<br \/><\/span><\/p>\n<p style=\"text-align: justify;\"><span>&nbsp;<\/span><\/p>\n<p style=\"text-align: justify; font-weight: bold;\">As market volatility, rising inflation, and interest rate pressures continue to impact the investing landscape, investors can find both a source of income stability and a way to beat inflation by investing in dividend growth stocks. Long-term investors can do well by strategically investing in companies that are likely to increase their dividends over time. Research clearly shows that companies with strong dividend payouts are more likely to outperform the market during interest rate tightening cycles. If you\u2019re interested in learning more about our North American Dividend Growth investment process, please <a href=\"https:\/\/www.bellvest.ca\/contact-us\/\"><span style=\"color: #1155cc;\">contact us<\/span><\/a> today.&nbsp;<\/p>\n<p style=\"text-align: justify;\"><span>&nbsp;<\/span><\/p>\n<p style=\"text-align: justify;\">&nbsp;<\/p>\n","protected":false},"featured_media":2132,"template":"","resources-categories":[20],"resources-type":[7],"class_list":["post-996","resources","type-resources","status-publish","has-post-thumbnail","hentry","resources-categories-wealth-planning","resources-type-blog-post"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.4 (Yoast SEO v28.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>How Investors Can Beat Record Inflation and Rising Interest Rates \u2013 the Benefits of Dividend Growth Strategies - Toronto Bellwether Family Wealth<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.bellvest.ca\/family-wealth-toronto\/resources\/the-benefits-of-dividend-growth-strategies\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Investors Can Beat Record Inflation and Rising Interest Rates \u2013 the Benefits of Dividend Growth Strategies\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.bellvest.ca\/family-wealth-toronto\/resources\/the-benefits-of-dividend-growth-strategies\/\" \/>\n<meta property=\"og:site_name\" content=\"Toronto Bellwether Family Wealth\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/bellwetherinvestments\/\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-17T20:45:46+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.bellvest.ca\/family-wealth-toronto\/wp-content\/uploads\/sites\/37\/2025\/09\/benefits-of-dividend-growth-strategies.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"600\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.bellvest.ca\\\/family-wealth-toronto\\\/resources\\\/the-benefits-of-dividend-growth-strategies\\\/\",\"url\":\"https:\\\/\\\/www.bellvest.ca\\\/family-wealth-toronto\\\/resources\\\/the-benefits-of-dividend-growth-strategies\\\/\",\"name\":\"How Investors Can Beat Record Inflation and Rising Interest Rates \u2013 the Benefits of Dividend Growth Strategies - 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