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I believe that inflation for a common man is higher than what the headline inflation data suggests. To retain purchasing power of money, it’s important to invest in asset classes that help in comfortably beating inflation. Within equities, it’s a good idea to invest in dividend stocks that offer an attractive yield. Besides regular cash flows, relatively low risk and steady capital appreciation are the positives. My target is to look for undervalued stocks with dividend yield of 5% or more for high total returns.
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