4 dividend stocks that can help me fight inflation!

I’m looking at dividend stocks to help my portfolio grow and overcome the impact of high inflation. Here are the top four on my buy list!

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The FTSE 100 and FTSE 250 are good places to look for high-paying dividend stocks. The blue-chip index is filled with mining and oil stocks that are performing well right now and returning hefty dividends to shareholders.

These sizeable dividend yields can help my portfolio fight back against soaring inflation. The current rate of inflation is 9.1% in the UK — the highest seen in decades.

However, I’m also looking for sustainable dividend yields that won’t disappear in the coming years.

So, here are four stocks I’ve bought or am looking to buy to help my portfolio negate the impact of inflation.

Phoenix Group 

Phoenix Group is a life insurance specialist that owns household names like Standard Life and ReAssure.

The group buys up legacy life insurance and pension funds that are closed to new business and manages them.  

Cash generation for the last full year came in above analysts expectations at £1.72bn. And that was slightly above the £1.71bn earned in 2020.

The business will have to keep evolving amid new fintech competition, but on the whole, I don’t expect demand for life insurance to disappear any time soon.

It’s currently offering an impressive 8.4% dividend yield.

Rio Tinto

Rio Tinto is a giant in the mining sector. And this tends to be a cyclical industry, meaning revenues generally are higher in periods of economic prosperity, but will struggle when things go the other way.

However, I believe we’re moving into a new era of scarcity in which minerals and commodities will remain at a higher prices for a longer period of time.

The mining stock is also one of the biggest payers on the FTSE 100. The yield is currently a whopping 12%.

Recession fears might drag this stock down in the short term, but in the long run, I’m increasingly positive on the industry.

Lloyds

Lloyds is one of the most traded stocks on the FTSE 100. It’s a banking stock that’s heavily focused on mortgage lending and that leaves it fairly exposed to changes in the housing market.

However, interest rates are increasing and that’s good for margins. It even earns more on the money it leaves with the Bank of England.

In the long run, I think Lloyds’ housing market exposure is positive, although I appreciate in the short term this could be problematic if the British economy tanks in the coming months.

Bank of Georgia

The Bank of Georgia went ex-dividend last week. The single payment is worth around 4% of the current share price.

Profits doubled in 2021 and 2022 looks like it should be another strong year despite issues caused by Russia’s invasion of Ukraine. Competitor TBC Bank recently announced a 46% increase Q1 profits. 

The market is certainly factoring-in concerns about the impact of Russia’s war in Ukraine, but there are some very positive metrics here. The bank has a price-to-earnings ratio of just 3.58.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be considered so you should consider taking independent financial advice.

James Fox owns shares in Lloyds and the Bank of Georgia. The Motley Fool UK has recommended Lloyds Banking Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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