In the coming days, I plan to share a few thoughts about the outlook for the New Year. But at the moment, I’ll just reflect on an experience I may have to get used to as a dividend investor.

Today the broad U.S. stock market indices all rose, and my portfolio lost a little bit of value.

I blame the news that inflation ran at an 7% pace last year. That will put pressure on bond prices and also income-producing stocks that have acted as a sort of fixed-income alternative for investors in the low rate environment we’ve enjoyed for many years. Until inflation starts trending down, which I hope will happen soon, I expect my portfolio will see some downside risk from the threat of higher interest rates.

Still, looking across my portfolio I’m not chomping at the bit to add to my positions — right at the moment. I did, a few months ago, increase my holdings of AT&T (T). The company’s plan to spin off its entertainment and media assets seems to be on track, the stock price remains depressed compared to peers in my judgment, and while we don’t know what the dividend payout will be once the company resets its business, it’s likely to be a yield that looks attractive compared to peers. In the meantime, I’m looking forward to collecting that last 7% dividend payout in February. As eager shoppers say, “I’ll take it! I’ll take it!”

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