- During economic headwinds, investors look for ways to keep their investments safe.
- Investors usually prefer dividend stocks as they tend to provide a stable source of income from investments.
Inflation levels in the UK have already breached the 11% mark, and if the projections are to be believed, it will go further up in the coming months. The Bank of England also warned last month that the UK is facing the most prolonged in more than 100 years. The economic downturn is not expected to settle in the coming months and will likely extend into 2024.
On the other hand, the country's economy shrank 0.2% in the latest quarter, hitting 0.4% lower than the levels seen before the COVID-19 pandemic. The mini-budget in September pushed the financial markets into a tizzy, aggravating the situation.
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Overall, these are challenging times, and investors look for ways to keep their investments safe during such times. While investors generally prefer gold and other commodities during economic headwinds, it doesn't necessarily mean that equity investments cannot give returns.
Several stocks, like dividend stocks, gain a lot of attention during such times. These stocks tend to provide stable earnings from investments. A lot of companies do not reduce their dividend payouts, and some even raise them if they perform well. Let us look at some such stocks which have yielded good dividends in the last 12 months.
Persimmon (LON: PSN)
Persimmon is a British housebuilding company. It belongs to the FTSE 100 index and has a market cap of £4,103.30 million. It has yielded a dividend of 18.3% as of 2 December. The stock price has fallen by 53.85% over the past year.
Synthomer Plc (LON: SYNT)
Synthomer is a chemical business. It is a leading supplier of tackifying resins and additives for adhesive products. With a market cap of £615.01 million, the stock belongs to the FTSE 250 index. It has an EPS of 0.48 and a dividend yield of 16.2% as of 2 December. The stock value has plummeted by 72.26% in the past year.
Ferrexpo Plc (LON: FXPO)
The Swiss-based mining group is the third largest iron ore pallets exporter globally. It enjoys a market cap of £873.52 million. The EPS currently stands at 1.48, while the stock price has fallen by 50.24% in the past year. The stock has yielded a dividend of 14.7% in the past 12 months.
Jupiter Fund Management Plc (LON: JUP)
The London-headquartered company is a fund manager for private and institutional investors. It is a constituent of the FTSE 250 index, with a market capitalisation of £709.91 million. The stock has yielded a dividend of 13.2%, with an EPS of 0.28 as of 2 December. Its stock price has fallen by 45.41% over the past year.
Pollen Street PLC (LON: POLN)
The UK-based investment management company belongs to the FTSE All-Share index. Its market cap currently stands at £225.79 million, and the stock has given a negative return of -33.90% to investors over the past year. It has a dividend yield of 12.3% as of 2 December.
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.