Investors told to seek high dividends to beat inflation

SET Investnow, an investment educational unit of the Stock Exchange of Thailand (SET), suggests investing in stocks with high dividend payouts of above 5% with low beta values to hedge against volatility and inflation.

The principle is to buy stocks with higher dividends than the February inflation rate of 5.28%, because they will generate better returns and expose investors to lower risks from volatility.

They are often classified as safe stocks or defensive stocks, although dividend stocks may not produce lower capital gains but offer stability, as the dividends will be paid regularly.

According to SET Investnow, a stock with a good dividend yield, with a low beta value, can reduce risks for investors. Beta value is another factor investors use to compare stock price movements against the movement of the overall stock index.

By definition, a stock market…