3 Dividend Stocks Helping Investors Keep Up With Rising Food Prices

Global food prices sit near fresh 2023 era highs as heatwaves and supply concerns keep pressure on household budgets. That kind of squeeze often pushes investors toward dividends that can help offset rising everyday costs. Dividend Fortresses focuses on stocks with 5%+ yields and an emphasis on resilience. This article highlights three of the strongest candidates from the screener and explains what makes their income streams stand out today.

The stocks covered below are just a sample of the Dividend Fortresses idea, and the full screen surfaced 1 more company with an income story that is just as compelling. To see the complete picture, head straight into the Dividend Fortresses screener to identify, analyze, and focus on the dividend plays that best match your income goals.

Halyk Bank of Kazakhstan (LSE:HSBK)

Halyk Bank of Kazakhstan is a universal bank that offers everything from current accounts and cards to mortgages, business lending, trade finance and investment services across Kazakhstan, Kyrgyzstan, Georgia and Uzbekistan. The bulk of its roughly KZT 1.8 trillion in reported segment revenue comes from Corporate Banking at about KZT 751 billion, followed by Investment Banking at KZT 330 billion, SME Banking at KZT 194 billion and Retail Banking at KZT 154 billion, with the rest unallocated. On the market, Halyk Bank of Kazakhstan is valued at about US$9.1b.

Halyk Bank of Kazakhstan combines high reported profitability and a strong deposit franchise with a share price that screens as cheap on multiple measures, which is why it stands out in a yield focused list. The bank reports a high net interest margin, a low cost to income ratio and a return on equity above 25%, while still carrying credit risks such as a relatively high bad loan ratio and modest reserves. Regulatory tightening, higher capital requirements and intense competition from fintechs could pressure margins; at the same time, the bank is pushing hard on digital growth and regional expansion. Upcoming results and a shareholder meeting later this month could be important checkpoints for how that trade off is evolving for income investors.

Halyk Bank of Kazakhstan’s high reported return on equity and low cost to income ratio could be masking a very different risk reward profile. Get the full picture in the 4 key rewards and 3 important warning signs

Build your own high yield and value shortlist

Halyk Bank of Kazakhstan and the other two dividend stocks here all surfaced from a single Simply Wall St screen, but the real power for you is in setting your own rules. Use our customisable Screener to mix filters for yield, valuation, quality, risks and more, or start with any of our curated Investing Ideas.

B.P. Marsh & Partners (AIM:BPM)

B.P. Marsh & Partners is a London based private equity and venture capital investor that backs specialist insurance and financial services businesses, usually taking minority stakes and providing growth capital and support. The group reports about £62.7 million of revenue from consultancy services and trading investments in financial services. On the market, B.P. Marsh & Partners is valued at roughly £242 million.

B.P. Marsh & Partners gives you concentrated exposure to specialist insurance intermediaries that collectively expect to handle around £1.7b of gross written premium, while still paying a yield of about 5.37% and running a share buyback program that could support per share metrics. However, earnings have been volatile, profit relies heavily on unrealised gains and the dividend is not well covered by free cash flow, so income investors need to decide how comfortable they are with valuation swings and funding risk. The combination of high reported margins, a portfolio valued at roughly £271 million in equity stakes and fresh board changes creates an income story that is not fully obvious from headline numbers.

B.P. Marsh & Partners has an equity portfolio valued at roughly £271 million and a yield around 5.37%, yet the real story sits in how those unrealised gains drive profits. Get the full picture in the analysis report for B.P. Marsh & Partners

Foresight Group Holdings (LSE:FSG)

Foresight Group Holdings is an asset manager that runs infrastructure and private equity funds, with a focus on renewable energy, social and digital infrastructure, and smaller private businesses. Most of its revenue comes from Real Assets at about £114.8 million, with Private Equity contributing roughly £50.1 million. On the market, Foresight Group Holdings is valued at about £556 million.

Foresight Group Holdings combines high quality earnings, reported growth and a focus on real assets tied to the energy transition, which is why it appears in a high yield screener. Recent full year results showed higher sales and net income, margins around 27.7% and a high return on equity, while a buyback program is steadily reducing the share count. At the same time, the business relies on external borrowing rather than customer deposits and fees are exposed to competition and regulation across the UK and Europe. Income focused investors who want exposure to infrastructure and renewables may want to look closer at how those strengths and risks balance out over the next few years.

Foresight Group Holdings blends real assets, renewables and reported margins around 27.7% in a way many income investors may be underestimating. Scan the analyst forecasts for Foresight Group Holdings to see where the next pressure point or upside surprise could emerge.

Seeking Alternatives Before The Crowd Moves

Fresh opportunities rarely stay under the radar for long. As money chases the next breakout, the best entries risk getting caught in fast momentum. Review these ideas while they may be relevant and consider them carefully.

• Spot companies with strong balance sheets before they attract wider attention by running a filter on the list of solid balance sheet and fundamentals (21 results) and focus on fundamentals that can support staying power.
• Look for early leaders in a niche that many still ignore by scanning the 28 best rare earth metal stocks while these suppliers remain under the radar for now.
• Track cash generating AI stocks before enthusiasm affects valuations by zeroing in on the 71 profitable AI stocks that aren't just burning cash and keep your watchlist filled with fresh ideas.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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