RIO, GSK, DEC: Stocks investors may put their lens on amid recession fears

Highlights

• In July, over 8 million people will get their first payment of £326 as a part of the support package for vulnerable families. The second payment of £324 will be given in autumn.
• Last month, chancellor Rishi Sunak set out £15 billion emergency support package to help Britons with rising cost of living and decreasing real pay.

The growing inflation in the UK has become a major cause of concern after several years. The pessimism among households as well as businesses is increasingly becoming evident especially with the fears of recession and stagflation looming over the economy. The pessimism among households as well as businesses is rapidly growing.

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Experts and economists are strongly feeling that there might be a similar stagflationary situation, a period of rising prices, low income along with no economic growth, like the one witnessed in 1970s, which rattled most economies that time.

The inflation rose by 9% in the year to April 2022. To battle the inflation, the Bank of England raised its interest rate, its fifth straight revision, to 1.25% from 1%.

In a bid to offer some relief to Britons, the Boris Johnson government floated a £37-billion government package to help them manage the soaring energy, food, and fuel bills.

In this regard, millions of households across the UK are set to receive their first payment first payment of £326 as a part of grants announced in May.

Last month, chancellor Rishi Sunak set out £15 billion emergency support package to help Britons with rising cost of living and decreasing real pay. In July, over 8 million people are expected to receive £326 payment, while the second payment of £324 will be given in autumn. 

©2022 Kalkine Media®

The two payments, which adds up to £650, will go to eligible low-income households in the UK. According to the government’s official guidance, a person may be eligible for the support payment if they are receiving benefits such as employment and support allowance, universal credit, income support, child tax credit, working tax credit, pension credit and jobseeker’s allowance. Further, a citizen who have started successful benefits claim before May 25, would be eligible for the first installment.

The package will also include a £400 energy discount in October as energy costs are set to soar to £2,800. The discount will be partly funded by a £5 billion windfall tax levied on oil and gas giants.

Amid the growing risk of recession in the UK, let us look at 5 stocks that investors can consider. 

1. Rio Tinto Plc (LON: RIO)

The shares of the Anglo-Australian multinational mining company, Rio Tinto Plc, were down by 1.10% at 10:20 AM (GMT+1) on 17 June 2022, at GBX 5,384. On a year-to-date basis, the FTSE 100-listed company has given its shareholders a return of 9.96% as of 17 June 2022. The current market cap of the company stands at £68,011.35 million and it has offered an annual dividend yield of 10.6%.

Related Read: Food prices may hit 15%: 3 FTSE stocks you may look at before investing

2. GSK Plc (LON: GSK)

The shares of the UK-based pharmaceutical company, GSK Plc, were trading at GBX 1,686.20, up by 0.85%, at 10: 40 AM (GMT+1) on 17 June 2022. The company operates through three business segments including Vaccines, Pharmaceuticals and Consumer Healthcare. It has given its shareholders a return of 17.32% over the last one year, while its year-to-date return stands at 4.99%. The main market listed company’s current market cap stands at £85,005.29 million and it has offered an annual dividend yield of 4.5%. 

3. Diversified Energy Company Plc (LON: DEC)

The shares of the UK-based independent energy company, Diversified Energy Company Plc were up by 1.60%, at 10:40 AM (GMT+1) on 17 June 2022, at GBX 120.40. On a year-to-date basis, the FTSE 250-listed company has given its shareholders a return of 15.33% as of 17 June 2022. The current market cap of the company stands at £1,010.68 million and it has offered an annual dividend yield of 11.4%. 

4. Standard Chartered Plc (LON: STAN)

With a market cap of £17,605.13 million, as of 17 June 2022, the shares of the FTSE 100 listed multinational banking and financial services company were trading at GBX 591.40, down by 0.30%, around 10:55 AM (GMT+1) on 17 June 2022. Standard Chartered Plc has given its shareholders a return of 31.67% since the start of this year and has also offered an annual dividend yield of 1.5%.

Related Read: WTB, JDW: Stocks to eye as hospitality firms hike pay to attract staff 

5. Imperial Brands Plc (LON: IMB)

The shares of the British multinational tobacco company, Imperial Brands Plc, were up by 0.08% at 11:00 AM (GMT+1) on 17 June 2022, at GBX 1,805.00. On a year-to-date basis, the FTSE 100-listed company has given its shareholders a return of 9.82% as of 17 June 2022. The current market cap of the company stands at £16,917.26 million has offered an annual dividend yield of 9.0%.

Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.