3 ‘Strong Buy’ Dividend Stocks to Consider as the Russia-Ukraine War Escalates

We’re closing in on two weeks since Russian forces invaded Ukraine, starting Europe’s largest land war since 1945.

So far, the Western nations have avoided commitments to oppose Russian arms directly, and have responded by sending munitions and humanitarian aid to Ukraine while instituting sanctions against Russia. 

The situation is complicated by Russian’s position as a major producer in the global energy markets, and Europe’s increasing reliance in the past decade on Russian natural gas exports.

For the financial markets, the immediate effect of the war was to spark off a round of increased volatility. 

In this environment of uncertainty, investors are starting to look for financial ‘safe havens,’ somewhere to put their money that will weather the current storm. 

According to David Kostin, chief US equity strategist for Goldman Sachs, the logical place to look is among the high-yield dividend stocks.

In a recent note, Kostin lays out his belief that the S&P companies will work to attract nervous investors this year by paying out richer stock dividends.

This effect, in his view, will be most pronounced in the energy sector, where rising crude oil prices will make up for supply chain snarls or production backups. 

Overall, Kostin sees the S&P companies showing 10% dividend growth year-over-year for 2022, up from his previous prediction of 8%.

But the Ukraine war and its impact on the energy trade is not the only factor to support dividends.

“High dividend yield and high dividend growth stocks also typically outperform during periods of high inflation and currently trade at attractive valuations,” Kostin added.

With this in mind, we’ve used TipRanks’ database to seek out three stocks whose profile justifies the entry risk in today’s unsettled conditions.

All three are backed by several analysts, enough to earn a “strong buy” consensus rating.

And better yet, for income-minded investors, all three of these stocks show high and reliable dividend yields. Let's take a closer look.

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