Current yield is a stock's dividend divided by its current price. The lower the price, the higher the yield. Compared to technology stocks, income investments have all the appeal of a clam. But they have their place in many portfolios. And right now, the world of income is looking better than it has in several years.
Inflation is typically the byproduct of an overheated economy.
As the economy picks up steam, employers need more workers to keep up with demand. As the supply of workers runs short, employers begin to bid up the price of labor - in short, they start handing out raises to keep good employees, and paying up to lure employees from other companies. As more workers get more money, they spend more, which increases demand. Eventually, businesses begin pushing up prices, people start paying those prices, and an inflationary spiral begins. Normally, the Fed pushes up interest rates to slow the economy and put a brake on the inflationary cycle.