READ: Kevin Simpson’s Interview with MarketWatch

Dividend growth — that’s the secret. That is the true hedge against inflation.
— Kevin Simpson

Simpson emphasized that his main strategy is selecting blue-chip companies that he and his colleagues expect to continue raising dividends rapidly. The companies are screened for quality — management track record, earnings and cash flow growth and returns on equity.

Simpson called dividend growth “the true hedge against inflation.” For many investors, high inflation is a new phenomenon, and we’re at an early stage of the counter-cycle of rising interest rates that can create a difficult environment for the broader stock market.