Navigating Inflation: Our Approach to Dividend Investing in Volatile Markets

Inflation may have moderated in recent reports, but that doesn’t mean investors can relax. While the Fed’s latest data shows inflation hovering near its 2% target, there’s growing concern about the potential impact of new tariffs, sticky services inflation, and overall market volatility.

Austin Graff, Co-Founder and CIO of Opal Capital and CIO for 49 Financial, recently shared his perspective in an InvestmentNews article discussing how wealth managers are helping clients prepare for what could come next.

The key? Staying disciplined and focusing on companies that are positioned to weather inflationary pressures and market swings over the long term.

"Over time, high-quality equities tend to be a good hedge against inflation. This includes companies with pricing power, which allows them to raise prices with inflation, preserving margins and profitability."— Austin Graff, CIO 

At Opal, this is exactly where we place our focus. Our dividend strategies are built to help investors navigate uncertain markets by focusing on businesses with durable fundamentals. Specifically, we look for:

• Companies generating strong free cash flow to support consistent dividend payments

• Healthy balance sheets that provide flexibility through different market conditions

• Pricing power that allows companies to adjust with inflation and protect profitability

• A track record of dividend durability, rather than simply chasing high yields

• A focus on long-term fundamentals, not short-term headlines

  
  

By staying grounded in these principles, we aim to help clients preserve purchasing power, maintain reliable income and avoid  reactionary decisions that often accompany volatile markets. Consistency in strategy is what allows portfolios to compound steadily over time, regardless of short-term disruptions.

As Austin shared, it's about helping investors stay focused on their long-term plan, not the short-term noise.

To read the full article from InvestmentNews, visit: Wealth Managers Weigh In on Inflation Numbers, Prepare for Volatility

For more on Opal Capital’s investment approach, visit opalinvest.com.