Have I been worrying too much about rising inflation? Given that I started worrying that higher inflation was poised to put downward pressure on my dividend paying stock portfolio about a decade ago, the obvious answer is yes. Only this time, my timing may not be off.

So far the stock market in general, dividend paying value stocks included, has continued its upward climb. But while that makes it fun to check in on the value of my portfolio, when I look at the broad stock market indices I start to feel a little vertigo. These are levels that leave me thinking about “irrational exuberance.”

This Barron’s article has an interesting take on what inflation could mean for the equity market. The short version: when measured against corporate profits among the S&P 500, inflation now exceeds the earnings available to shareholders. That creates a negative return scenario, not taking into account the possible growth of stock prices. In the past, when the “real yield” earnings return measured against inflation has turned negative, it has not been a good omen for future stock price performance.

And the S&P 500 “earnings yield” is quite a bit higher than the index’s dividend payout rate, because of course companies don’t typically pay out all their available earnings to investors. So achieving a dividend yield that keeps pace with inflation becomes even more difficult in a rising inflation environment.

Nonetheless, I remain keen on a few of the dividend payers in my portfolio and am edging toward adding to my holdings of one or more. Right now, AT&T looks attractive, even as the dust settles from the news that the company will spin off its entertainment offerings and reduce its dividend by half. I still look at it as an attractive buying opportunity at the current share price of around $29 per share. Still, I have to admit I haven’t pulled the trigger yet. Those pesky inflation worries have me on the sidelines again.

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