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Highlights:
- Inflation is at a 40-year-high level and is expected to hit 13% by the end of this year, as per the Bank of England's forecast.
- In such a situation, investors can explore stocks that pay a good dividend to get the best out of their investment.
The first six months of this year haven't been particularly encouraging for equity investors. The UK stock market demonstrated poor performance in the first half of 2022 as investors exercised caution before putting their money into the market. The primary reasons behind this are higher inflation, geopolitical crisis, and COVID-19.
In such situations, investors tend to look for stocks that are more stable and provide better returns. Dividend stocks are among the investors' favourites during economic slowdowns as companies rarely cut down on dividends even when their earnings aren't exceptionally well. Kalkine Media® explores some such stocks that investors may consider. Take a look.
Imperial Brands Plc (LON: IMB)
Imperial Brands is a UK-based tobacco firm with a presence in over 120 markets. Among its popular products are Winston, West, Davidoff, Gauloises, etc. It is listed on the blue-chip FTSE 100 index, and its shares were up 0.14% at GBX 1,836.00 as of 10:12 am GMT+1 on 5 August. It has a market cap of £17,425.73 million, and over the past year, its share price has appreciated by 16.25%. On a year-to-date basis, the share value has appreciated by 13.28%. Imperial Brands has offered an annual dividend yield of 7.6%.
©2022 Kalkine Media®
British American Tobacco plc (LON: BATS)
The London-headquartered company is the world's biggest tobacco firm in terms of net sales. For the first six months of 2022, the company reported a revenue of £12,869 million, up 5.7% over 2021. It currently has a market cap of £72,540.14 million, and its 12-month return stands at 19.93%. The year-to-date return is at 18.77%. As of 11:58 am GMT+1 on 5 August, the stock was trading at GBX 3,246.00, up 0.82%. Investors are due to receive a dividend of £0.5445 per share on 10 November, taking the current dividend yield to 6.64%.
Anglo American plc (LON: AAL)
The British multinational miner is the world's largest aluminium producer and also a producer of copper, nickel, diamonds, and iron ore. AAL on Friday enjoyed a market cap of £38,334.98 million and was giving a return of -16.29% to the investors over the past 12 months and -4.36% on a year-to-date basis. Shares of the company were trading 0.72% higher at GBX 2,886.00 as of 12:14 pm GMT+1 on Friday. Anglo American has an annual dividend yield of 6.91%, and its EPS stands at 6.93.
Vodafone Group plc (LON: VOD)
Vodafone Group is a UK-based telecom firm providing cellular and broadband services to its customers in several countries. Over the past one year, the stock has given a return of 3.03% to investors, while the year-to-date return is at 7.30%. The stock was trading 1.53% higher at GBX 120.46 as of 12:21 pm GMT+1 and enjoyed a market cap of £33,125.48 million on Friday. Currently, it is offering an annual dividend yield of 6.50%.
Rio Tinto Plc (LON: RIO)
Rio Tinto is the world's second-largest metals and mining firm, in its latest results, it surpassed analysts' expectations to hit US$30 billion. The company's market cap stood at £60,423.61 million, and its share value has dipped over 22% in the past 12 months. The YTD returns are -0.55%. Shares of the FTSE 100 constituent were up by 0.68% at GBX 4,863.00 as of 12:37 pm GMT+1 on Friday. It has yielded a dividend of 10.73% on an annual basis.
Antofagasta Plc (LON: ANTO)
Antofagasta is a metals and mining company with a focus on copper, gold, and silver mining. It is listed on the FTSE 100 index with a market cap of £11,140.18 million, and it has provided a negative return of -25.21% to investors over the past one year. On a year-to-date basis, the return has dropped to -14.57%. The stock was trading at GBX 1,143.50, up 1.20%, as of 12:54 pm GMT+1 on Friday. With an EPS of 1.31, the annual dividend yield of Antofagasta stands at 9.66%.
Ferrexpo Plc (LON: FXPO)
Ferrexpo, the world's third-largest exporter of iron ore pellets enjoyed a market cap of £818.19 million. The year-to-date return is placed at -51.67%. Shares of the company were trading 4.25% higher at GBX 144.70 as of 1:00 pm GMT+1 on Friday. Its annual dividend yield currently stands at 11.57%, and the EPS is at 1.08.
©2022 Kalkine Media®
Diversified Energy Company Plc (LON: DEC)
Diversified Energy Company is an independent energy firm engaged in oil and gas production. With a market cap of £1,040.73 million, shares of the company were 0.49% higher at GBX 122.90 as of 1:04 pm GMT+1 on Friday. Over the past one year, shares of the company have appreciated by over 16%, while the year-to-date return has exceeded 17%. The EPS, on the other hand, stands in the negative territory at -0.03. The company's annual dividend yield is 10.93%.
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.
