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Highlights
- During these rough times, the resilience of companies is being given greater weightage than their growth.
- High-quality stocks which are trading at dampened prices, and are subsequently offering above-average dividend yields, are particularly gaining the attention of investors.
- The CPI inflation has surpassed the 10% mark, which has impacted the overall investment landscape in the UK.
With inflation levels hitting the roof and the alarms of recession ringing, the benchmarks for choosing the top FTSE 250 stocks are quickly changing. During these rough times, the resilience of companies is being given greater weightage than their growth, as the defensive qualities of stocks would help them survive the current economic situation.
High-quality stocks which are trading at dampened prices, and are subsequently offering above-average dividend yields, are particularly gaining the attention of investors. Dividend-paying stocks allow investors to generate a stream of passive income, which would support them in beating inflation.
©2022 Kalkine Media®
The CPI inflation has surpassed the 10% mark, which has impacted the overall investment landscape in the UK. The primary factor pushing up inflation is the soaring cost of energy. The households already struggling with rising energy bills face further problems. The UK energy regulator Ofgem would raise the energy price cap in October, ahead of a rough winter.
Businesses aren't even protected from rising energy costs like households, as the energy price cap doesn't apply to them. If the government doesn't step and take appropriate steps soon, several small businesses on the brink of collapse may shut down.
While the economic outlook darkens, investors can keep an eye on the stocks offering decent annual dividend yields and positive returns. Kalkine Media® explores the following FTSE 250 stocks that UK investors can consider.
Diversified Energy Company plc (LON: DEC)
The market cap of the oil and gas-making corporation based in the US, Diversified Energy Company plc, stands at £1,126.67m as of 1 September. DEC shares plunged by 3.47% on Thursday at 11:06 AM (GMT+1) while trading at GBX 127.80. The company is offering its investors a massive yearly dividend yield of 10.6%. The company's one-year and YTD (year-to-date) returns as of 1 September stand at 14.70% and 22.61%, respectively. However, it has a negative EPS (earning per share) of -0.03.
BlackRock World Mining Trust plc (LON: BRWM)
The market cap of the mining and metals focused investment trust, BlackRock World Mining Trust plc, stands at £1,181.59m as of 1 September. BRWM shares plunged 3.20% on Thursday at 11:13 AM (GMT+1) while trading at GBX 606.00. The company presently offers its investors a yearly dividend yield of 6.9%. The company's one-year and YTD returns as of 1 September stand at 7.07% and 2.89%, respectively. It has a positive EPS of 1.06.
Bank of Georgia Group plc (LON: BGEO)
The market cap of the leading universal bank extending various financial services, Bank of Georgia Group plc, stands at £973.66m as of 1 September. BRWM shares plunged by 0.10% at 11:32 AM (GMT+1) on Thursday while trading at GBX 1,998.00. The company presently offers its investors a yearly dividend yield of 6.7%. The company's one-year and YTD returns as of 1 September stand at 20.06% and 20.20%, respectively. It has a huge positive EPS of 15.22.
ContourGlobal plc (LON: GLO)
The internationally functioning renewable energy generation firm ContourGlobal plc's market cap stands at £1,694.65m as of 1 September. GLO shares plunged by 1.16% at 11:36 AM (GMT+1) on Thursday while trading at GBX 255.00. The company presently offers its investors a yearly dividend yield of 6.6%. The company's one-year and YTD returns as of 1 September stand at 30.79% and 32.71%, respectively. It has a positive EPS of 0.02.
GCP Infrastructure Investments Ltd (LON: GCP)
The market cap of the prominent closed-ended investment enterprise, GCP Infrastructure Investments Ltd, stands at £1,694.65m as of 1 September. GCP shares plunged by 1.16% at 11:36 AM (GMT+1) on Thursday while trading at GBX 255.00. The company presently offers its investors a yearly dividend yield of 6.6%. The company's one-year and YTD returns as of 1 September stand at 30.79% and 32.71%, respectively. It has a positive EPS of 0.02.
Investec plc (LON: INVP)
The market cap of the leading British financial services provider, Investec plc, stands at £2,890.14m as of 1 September. INVP shares plunged by 0.07% at 11:46 AM (GMT+1) while trading at GBX 414.90. The company is offering its investors a yearly dividend yield of 6.0%. The company's one-year and YTD returns as of 1 September stand at 44.36% and 9.71%, respectively.
Foresight Solar Fund Ltd (LON: FSFL)
The market cap of the solar energy-focused investment company, Foresight Solar Fund Ltd, stands at £1,694.65m as of 1 September. FSFL shares plunged by 1.16% at 11:56 AM (GMT+1) on Thursday while trading at GBX 742.93. The company presently offers its investors a yearly dividend yield of 5.8%. The company's one-year and YTD returns as of 1 September stand at 21.32% and 20.37%, respectively. However, it has a negative EPS of -0.01.
OSB Group plc (LON: OSB)
The market cap of the banking services provider, OSB Group plc, stands at £2,421.73m as of 1 September. OSB shares plunged by 2.82% at 12:01 PM (GMT+1) on Thursday while trading at GBX 534.50. The company is offering its investors a yearly dividend yield of 5.4%. The company's one-year and YTD returns as of 1 September stand at 4.71% and -3.79%, respectively. It has a positive EPS of 0.76.
JLEN Environmental Assets Group Ltd (LON: JLEN)
The market cap of the renewable power focused infrastructure investment company, JLEN Environmental Assets Group Ltd, stands at £883.81m as of 1 September. JLEN shares plunged by 1.65% on Thursday at 12:09 PM (GMT+1) while trading at GBX 131.40. The company presently offers its investors a yearly dividend yield of 5.1%. The company's one-year and YTD returns as of 1 September stand at 18.93% and 25.05%, respectively. It has a positive EPS of 0.02.
Merchants Trust Plc (LON: MRCH)
The market cap of the closed-ended equity mutual fund, Merchants Trust Plc, stands at £732.10m as of 1 September. MRCH shares plunged by 1.48% at 12:10 PM (GMT+1) while trading at GBX 532.00. The company presently offers its investors a yearly dividend yield of 5.1%. The company's one-year and YTD returns as of 1 September stand at 0.97% and -5.20%, respectively. It has a negative EPS of -0.58.
