Dividend stocks to watch amid rising inflation and political chaos

Highlights

• The inflation level in the UK has crawled back to a 40-year high level of 10.1% in September, going up from August's 9.9%.
• BoE's deputy governor Ben Broadbent said it is not yet known if the interest rates have to go up as much as the market has anticipated.
• Amid the inflationary crisis, UK PM Liz Truss announced her resignation on Thursday.

The inflation level in the UK has crawled back to a 40-year high level of 10.1% in September, going up from August's 9.9%. Soaring food prices mainly drove the rise in inflation. With the budget squeeze, the pressure on the government and the Bank of England (BoE) has been rising.

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While the markets expect another big rate hike to control the rising inflation, BoE's deputy governor Ben Broadbent said on Thursday that it is not yet known if the interest rates have to go up by as much as the market has anticipated. This may have bought some respite to the mortgage holders, who have been worried that interest rates may surpass the 5% mark by next summer.

Amid the inflationary crisis, UK PM Liz Truss announced her resignation on Thursday, which has deepened the political chaos in the nation. Truss has declared that a leadership election would be held within a week, and she would remain the PM until its completion.

After Truss's resignation, sterling gained while UK's mid-caps surged by around 1%. Amid the political turmoil, Kalkine Media® explores three dividend stocks listed on the London Stock Exchange. 

Diversified Energy Company plc (LON: DEC)

Diversified Energy Company plc's annual dividend yield of the oil and gas producing business stands at 12.0% as of 20 October. DEC shares rallied by 1.97% on Thursday at around 2:10 PM (GMT+1) while trading at GBX 129.30. The FTSE250 company's market cap stands at £1,084.04 million, and it currently has a turnover (on book) of £488,385.16. However, its EPS (earnings per share) is negative, at -0.03. At the time of writing, the company's one-year and YTD (year to date) returns stand at 11.55% and 23.94%, respectively.

Bank of Georgia Group plc (LON: BGEO)

The annual dividend yield of the retail banking and payment services provider, Bank of Georgia Group plc, stands at 7.7% as of 20 October. BGEO shares were trading at GBX 2,020.00 on Thursday at around 2:15 PM (GMT+1). The FTSE250 company's market cap stands at £978.06 million, and it currently has a turnover (on book) of £567,657.14. It has a decent positive EPS of 15.22. At the time of writing, the one-year and YTD returns of the company stand at 26.73% and 20.50%, respectively.

Imperial Brands plc (LON: IMB)
The annual dividend yield of the leading tobacco maker, Imperial Brands plc, stands at 6.9% as of 20 October. IMB shares surged by 1.04% on Thursday at around 2:20 PM (GMT+1) while trading at GBX 2,047.00. The FTSE100 company's market cap stands at £19,395.39 million, and it currently has a turnover (on book) of £13,057,086.59. It has a positive EPS of 3.00. At the time of writing, the one-year and YTD returns of the company stand at 31.26% and 26.20%, respectively.