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I'd like to create a Stellar token and would like to use it as shares for a startup I'm working on so the whole idea is to reward early investors in the ICO with a fixed yearly dividend so inflation looks like a good option. Is that even possible?

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This is possible according to the stellar blog:

Inflate token supply in a predefined schedule using pre-authorized transactions

Issue a dividend

In step 1, an issuing account is created. This is the account that can create tokens and send them out. But, notice in the end of the article (step 6) they lock the account, so that the supply is limited. If you want to be able to create inflation, simply do not lock the issuing account.

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    Does it make sense to copy the summarizing bullet points from the blog post so that they live in this thread (in case the link is broken down the line)?
    – Spaceboat
    Commented Jan 18, 2018 at 18:29
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    Is it possible to inflate at a predefined rate while guaranteeing you won't inflate by more? If you do not lock the issuing account, you'd be able to inflate by any amount. What if you'd only like to inflate by 100 tokens each year and never more than that? Is that doable? Commented Aug 15, 2018 at 13:53

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