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Highlights
- The UK market has been going through a roller coaster ride lately, especially since the Ukraine war.
- The release of the latest inflation data by ONS on 18 May has again shaken the UK market, with inflation hitting a 40-year high level of 9%.
- Blue-chip dividend-paying stocks have been on the radar of investors to generate a stable stream of income amid the market turmoil.
The UK market has been going through a roller coaster ride lately, especially since the Ukraine war started. The highly volatile environment has been pushing investors away from the equity markets, as they are looking for safe-haven investments to protect themselves from potential losses.
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After stabilising a bit due to the release of lower unemployment numbers, the UK market was again shaken after the new inflation data was released. According to the Office for National Statistics (ONS), the Consumer Prices Index (CPI) has surged from 7% in the 12 months to March 2022 to 9% in April. This has been the highest inflation level witnessed by the UK in 40 years. The blue-chip FTSE 100 index was down by 0.26% at around 1:00 PM (GMT+1) after the release of the inflation data.
The Bank of England (BoE) has warned that the inflation levels may cross 10% in the final quarter of the year. The monetary tightening stance would lead to further interest rate hikes, resulting in lower investor and consumer confidence. UK households have been struggling to pay their food and fuel bills while those investing have been struggling to protect themselves from potential losses.
Amid the increasingly volatile environment and fears of rocketing inflation, investors have been trying to avoid the risks associated with investing. Blue-chip dividend-paying stocks have been on the radar of investors to generate a stable stream of income amid the market turmoil.
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Here are 3 blue-chip stocks that investors can keep an eye on amid rising volatility.
Airtel Africa plc (LON: AAF)
Mcap: £5,385.43 million
One-year return: 80.24%
Dividend yield: 2.8%
The shares of the UK-based telecommunications firm, Airtel Africa plc, were down by 0.77% at around 12:45 PM (GMT+1) on 18 May 2022, at GBX 142.20. The FTSE 100 company has provided its shareholders with a return of 80.24% over the last one year as of 18 May 2022. The company is currently offering a dividend yield of 2.8% a year.
Shell plc (LON: SHEL)
Mcap: £175,718.34 million
One-year return: 67.46%
Dividend yield: 3.3%
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The shares of the prominent British oil industry firm, Shell plc, were up by 1.64% at around 12:45 PM (GMT+1) on 18 May 2022, at GBX 2,389.00. The FTSE 100 company has provided its shareholders with a return of 67.46% over the last one year as of 18 May 2022. The company is currently offering a dividend yield of 3.3% a year.
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Glencore plc (LON: GLEN)
Mcap: £65,537.72 million
One-year return: 52.25%
Dividend yield: 4.2%
The shares of the commodity trading and mining business, Glencore plc, were down by 0.35% at around 12:45 PM (GMT+1) on 18 May 2022, at GBX 496.40. The FTSE 100 company has provided its shareholders with a return of 52.25% over the last one year as of 18 May 2022. The company is currently offering a dividend yield of 4.2% a year.
