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Highlights
- The ongoing geopolitical tension between Russia and Ukraine has sparked volatility and triggered a major sell-off across global markets.
- Volatility in the stock market increases the bid-ask spread widens for assets.
- Dividend stocks offer a great source of passive income, are significantly less risky, and help to fight against inflation and market volatility.
The ongoing geopolitical tension between Russia and Ukraine has sparked volatility and triggered a major sell-off across global markets. Last week, Russian President Vladimir Putin ordered a special military operation in Ukraine, sending global markets in deep red.
Volatility is a measure of how sharply the values of the shares are moving up and down, the increasing uncertainty across the global financial markets is concerning investors to protect their investment. Volatility in the stock market increases as the bid-ask spread widens, which is the difference between the price someone is offering to pay and the price at which someone is willing to sell an asset.
© 2022 Kalkine Media®
To protect themselves from volatility, investors may consider investing in stocks of companies that consistently distribute profits as dividends to their shareholders, as it offers a great source of passive income, are significantly less risky, and help to fight against inflation and market volatility.
However, investing in dividend stocks is considered safe but one should completely understand the pros and cons and should thoroughly research and compare it with other investment types.
Let us look at five FTSE-listed dividend stocks that you may consider in a volatile market.
Triple Point VCT Plc (LON: TPVE)
Triple Point VCT Plc is a venture capital trust that invests in a portfolio of VCT qualifying and non-qualifying unquoted investments. It also has an investment in the companies of the finance sector, which offers to fund for short- and medium-term periods to small and medium businesses.
The company’s market cap stands at £19.76 million as of 25 February 2022. Its one-year dividend yield stood at 433.3% and its five-year average dividend yield stood at 50.1%. Triple Point VCT Plc’s shares closed at GBX 66.00 on 25 February 2022.
Also Read: Shell, Vivo Energy: Oil stocks to keep an eye on amid Russia supply fears
Secured Income Fund Plc (LON:SSIF)
Secured Income Fund Plc is an investment company that invests mainly in a range of secured loans and other secure loan-based instruments originated through a variety of channels and diversified across a range of asset classes, geography, and duration to offer shareholders with risk-adjusted returns in the form of regular and sustainable dividends.
The company’s market cap stands at £10.01 million as of 25 February 2022. Its one-year dividend yield stood at 75.4% and its five-year average dividend yield stood at 16.6%. Secured Income Fund Plc’s shares closed trading at GBX 19.00 on 25 February 2022.
Evraz Plc (LON: EVR)
FTSE 100-listed Evraz Plc is a global vertically integrated steel manufacturing and mining company with operations in Canada, the US, Russia, the Czech Republic, and Kazakhstan. Recently, the company has announced an interim dividend of US$729 million, which is US$0.50 per share. Its total segment revenue increased to US$14,159 million, from US$9,754 million in FY2020.
The company’s market cap stands at £2,498.01 million as of 25 February 2022. Its one-year dividend yield stood at 47.9% and its five-year average dividend yield stood at 11.5%. Evraz plc’s shares closed trading at GBX 204.70, up by 19.53%, on 25 February 2022.
© 2022 Kalkine Media®
Gulf Keystone Petroleum Ltd (LON: GKP)
Gulf Keystone Petroleum Ltd operates as an oil and gas exploration and production in the Kurdistan region of Iraq. Recently the company has declared an interim dividend of US$50 million, which will be equivalent to 23.394 US cents per Common Share. A dividend of 17.204p per Common Share will be paid on 25 February 2022 to those shareholders on the register of members of the Company as of 11 February 2022.
The company’s market cap stands at £429.60 million as of 25 February 2022. Its one-year dividend yield stood at 43.9% and its five-year average dividend yield stood at 5.1%. Gulf Keystone Petroleum Ltd.’s shares closed trading at GBX 201.00 on 25 February 2022.
Also Read: Argo Blockchain, CME Group: FTSE-listed crypto stocks you may look at
Seneca Growth Capital VCT Plc (LON: HYG)
Seneca Growth Capital VCT Plc is a venture capital trust that invests in a diverse portfolio of listed and unlisted AIM/AQSE growth capital investments with an aim to diver high and attractive income and capital growth over the long term.
The company’s market cap stands at £2.23 million as of 25 February 2022. Its one-year dividend yield stood at 32.7% and its five-year average dividend yield stood at 44.6%. Seneca Growth Capital VCT Plc’s shares closed at GBX 27.50 on 25 February 2022.
Note: The above content constitutes a very preliminary observation or view based on industry 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.
