The big problem with living off dividends from companies that frequently raise their dividend is that usually the yield is low compared to what you can earn in fixed income investments. Most are solid growth companies so they have capital gains potential. Also it is difficult to move into them slowly. The income is taxable. So if you buy in while you are still working, the tax bite can be severe.However, if you have enough for diversification and the payments cover your expenses, yes, you do have inflation protection. It can be a good strategy. There is the risk that some may falter in time, so diversification is an important aspect.
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