10 Best Inflation Protection Stocks Of March 2024 (2024)

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Merck & Company is a pharmaceutical giant that develops drugs to treat everything from cancer to shingles. About half of its annual sales are generated in the U.S. It has an “A” financial rating from Morningstar.

Analysts expect the company’s earnings and sales growth to be 180.1% and 5.6% respectively over the next year, which could help the share price grow at a rate well above inflation. The big jump is the result of earnings likely declining in 2023 and then rebounding in 2024.

Merck has steadily increased its dividend since 2011, with the total payout rising 5.4% per year over the last 10 years.

Eli Lilly is among the largest U.S. pharmaceutical companies, offering a wide portfolio of drug products. With an “A” financial rating from Morningstar, LLY has delivered the highest 10-year average annualized returns on this list—29.8%. For context, the S&P 500 has averaged around 12% per year over the same time frame.

Sales and earnings are expected to grow in 2024 by 29.0% and 15.4% respectively. LLY has the highest projected EPS growth estimate on this list over the next five years. This suggests that the analyst community believes the company’s inflation-beating growth is set to continue. In addition, Lilly has increased its dividend payout every year since 2015 by 8.7% per year on average.

The stock is in a long-term uptrend, and that uptrend is continuing in 2023 so far.

Headquartered in the U.K., AstraZeneca is one of the largest global pharmaceutical companies. The company has 172 projects in its pipeline at various stages of testing and development.

Analysts expect AstraZeneca’s earnings and sales to increase by 16.8% and 10.1% respectively in 2024. The company has held its dividend payouts stable over the last decade, and it’s earned an “A” financial rating from Morningstar.

The stock is in a long-term uptrend, but as of September 4, it has pulled back by about 10% off its all-time high.

Church & Dwight is a household and personal product company selling baking soda, deodorant, toothpaste, cat litter and a wide array of other products. It sells products under the Arm & Hammer brand name, as well as other products under Trojan, Nair, WaterPik and more.

While CHD has the lowest forecasted earnings on this list over the next five years, it has been one of the better performing stocks on the list as well. Only LLY and AZN have outperformed it over the past 10 years. It pays a solid dividend with the dividend amount growing by 6.9% per year over the last decade.

The stock has an “A” financial health rating from Morningstar, and analysts expect EPS and sales to grow by 8.2% and 3.6% next year.

After falling 33% in 2022 the stock has rallied back in 2023. As of September 4, it is trading 8% below the high.

Becton, Dickinson is the world’s largest producer of surgical supplies, such as syringes and needles. A little more than half of its revenue comes from the U.S.

While BDX’s dividend is one of the lowest on this list, it has steadily raised the payout by about 6% per year for more than a decade.

Morningstar gives it an “A” financial rating. EPS and sales are expected to be strong next year, growing 10.8% and 5.6% respectively.

The stock price is trading near the top of a range it has been in since 2018.

Mondelez International was spun off from the Kraft Heinz Company (KHC) in 2012. It produces many well-known snack food brands, such as Halls, Trident, Cadbury, Oreo and Chips Ahoy.

MDLZ has an “A” financial rating from Morningstar, and the company pays a great dividend, which it tends to raise aggressively. The average dividend payout increased 11.5% per year over the last 10 years. Analysts expect 4.5% sales growth and 9.0% earnings growth over the next year.

The stock is in a long-term uptrend, but as of September 4, it has pulled back about 11% from its all-time high. Such pullbacks can provide entry points for long-term investors.

CMS Energy is a utility that supplies its customers with natural gas and electricity. It is the only stock on this list with a “B” financial rating from Morningstar.

For 2024, analysts expect CMS’s sales to grow by 4.0% and earnings to gain 7.7%. The latter is in line with five-year annualized EPS estimates of 7.8%. The company has the highest dividend yield on our list, and it has increased its dividend payout steadily for over a decade by about 6.7% per year.

The stock has been relatively flat the last several years, and as of Septmeber 4, it is trading 25% below its 2022 high. This may be an attractive buy point for long-term investors.

PepsiCo is one of the world’s most recognized beverage and snack brands, selling products like Gatorade, Lays and of course, Pepsi. The company has an attractive dividend yield and has steadily boosted its payout over the last decade—8.3% per year. It has an “A” financial rating from Morningstar.

In 2023, PEP’s sales and earnings are expected to grow by 4.8% and 8.0% respectively. Analysts project longer-term annualized EPS growth of 8.5% over the next five years.

The stock is in a long-term steady uptrend, but it has pulled back in the second half of 2023, which may provide an entry point for long-term investors.

McCormick sells spices, herbs, seasonings and sauces under its own name and several others, including Frank’s Red Hot, Thai Kitchen, French’s and more.

The company pays a nice dividend, which has steadily increased for many years. The dividend amount has increased by 8.7% per year on average over the past 10 years. Analysts expect 10.6% EPS growth next year with sales growth of 3.6%. MKC has an “A” financial health rating.

The stock was weak in 2022, and it is attempting to recover in 2023. However, as of September 4, MKC remains about 25% below its all-time high.

Hershey is one of the largest chocolate candy makers in the U.S. with brands like Kit Kat, Kisses and Reese’s. It has an “A” financial health rating and pays a healthy dividend. The dividend payout amount has increased by 9.4% per year over the last decade.

Analysts expect 7.8% EPS growth next year coupled with a 4.3% increase in sales. Sales and revenues have steadily increased over the years resulting in a long-term uptrend in the share price.

As of September 4, the stock has fallen 23% off its all-time high set early this year. Large drops are relatively rare in this stock, so this may present a buying opportunity.