BATS, IMB, AAL: Why should you eye these stocks amid rising inflation?

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BATS, IMB, AAL: Why should you eye these stocks amid rising inflation?

 BATS, IMB, AAL: Why should you eye these stocks amid rising inflation?
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Highlights

  • BoE’s Governor Andrew Bailey is all set to face the wrath of Conservative MPs on Monday over the rising inflationary pressure.
  • The UK inflation levels, which have recently hit a 30-year high of 7%, may move up to 10% by the end of this year, as per BoE.

Amid the spiralling cost-of-living crisis, Bank of England Governor Andrew Bailey is all set to face the wrath of Conservative MPs on Monday over the rising inflationary pressure. Meanwhile, Chancellor Rishi Sunak has been making efforts to stabilise the ongoing crisis prior to the summer recess. The BoE is being heavily criticised for not being able to control the situation, and thus Bailey would appear at the Treasury select committee after raising concerns about the bank’s independence being attacked.

Defensive stocks to invest in amid rising inflation

2022 Kalkine Media®

Labour has been urging the UK Government for levying a windfall tax on oil and gas companies to lower the soaring energy bills but reportedly Business Secretary Kwasi Kwarteng and even PM Boris Johnson are opposing the move. However, Sunak hasn’t been able to rule out the tax. The UK inflation levels, which have recently hit a 30-year high of 7%, may move up to 10% by the end of this year, as per BoE. This is way above the BoE’s 2% target, thus raising genuine concerns about where the UK economy is headed.

The UK Government is being called out by Labour for taking matters in its own hands instead of blaming the bank, by introducing an emergency budget, removing the hike in National Insurance (NI) contributions, and implementing a windfall tax on oil giants. However, the Treasure has rejected the idea of an emergency budget, but it will introduce a few limited measures to tackle the ongoing crisis in the autumn budget.

Amid the crisis, investors have been drifting towards defensive stocks as they offer steady dividends and secure earnings irrespective of the condition of the overall stock market.

RELATED READ: What is windfall tax? Will it affect soaring energy prices?

Let’s look at 3 such stocks that investors can keep an eye on.

British American Tobacco plc (LON: BATS)

The shares of the leading UK-based cigarette manufacturer, British American Tobacco plc, were down by 0.12% at around 11:30 AM (GMT+1) on 16 May 2022, at GBX 3,425.00. With a market cap of £77,928.34m, the FTSE 100 company has provided its shareholders with a return of 21.17% as of 16 May 2022, while its YTD return stands at 25.29%. The current dividend yield offered by the company stands at 6.3% a year.

Defensive stocks to invest in amid rising inflation

2022 Kalkine Media® 

Imperial Brands plc (LON: IMB)

The shares of the UK-based tobacco company, Imperial Brands plc, were down by 0.32% at around 11:30 AM (GMT+1) on 16 May 2022, at GBX 1,701.50. With a market cap of £16,223.47m, the FTSE 100 company has provided its shareholders with a return of 6.95% as of 16 May 2022, while its YTD return stands at 4.94%. The current dividend yield offered by the company stands at 8.1% a year.

RELATED READ: INVP, BRW, EMG: Should you invest in these financial stocks now?

Anglo American plc (LON: AAL)

The shares of the UK-based mining company, Anglo American plc, were up by 1.39% at around 11:30 AM (GMT+1) on 16 May 2022, at GBX 3,350.50. With a market cap of £44,200.26m, the FTSE 100 company has provided its shareholders with a return of 2.62% as of 16 May 2022, while its YTD return stands at 11.14%. The current dividend yield offered by the company stands at 7.1% a year.

Defensive stocks selected from TR based on high dividend yield (LTM).

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