I’ve lost none of my appetite for UK shares, although I’m more cautious with what I buy today. One way to protect myself is to choose counter-cyclical shares — and companies in traditionally defensive industries — whose earnings forecasts are boosted or unaffected by current economic conditions.

With this in mind, here are two great growth stocks I’m considering right now.

H&T Group

Pawnbrokers like H&T Group (LSE:HAT) tend to thrive during tough times like these. In fact, this Alternative Investment Market (AIM) operator said last month that “demand for our core pawnbroking product continues to grow, with particularly strong lending demand in the final ten weeks of the year, including record levels of new customers borrowing from us for the first time“.

With the cost-of-living crisis dragging on, City analysts are expecting earnings at H&T to rise 5% in 2025. Incidentally, this also leaves the company trading on a low price-to-earnings (P/E) ratio of 7.1 times.

The trading landscape is especially favourable for H&T today thanks to the gold price surge. Bullion hit new record highs above $3,151 per ounce earlier today, and is tipped by many to keep climbing as fears over the economic and geopolitical landscape rise.

On the downside, retailers like this face fresh cost pressures as the National Living Wage and National Insurance contributions rise. H&T thinks NI changes alone will result in a £2m hit each year.

But on balance, I still think the pawnbroker’s a great stock to consider in these tough times.

Chemring Group

Along with the broader defence sector, shares in Chemring Group (LSE:CHG) have increased in value following Russia’s invasion of Ukraine in 2022.

This specific FTSE 250 contractor has also rose strongly in February and March following a £1bn-plus takeover approach from Bain Capital. Yet based on current earnings forecasts it still offers decent value for money.

City analysts think earnings will rise 27% in the current financial year (to October 2025). This leaves it trading on a forward P/E ratio of 18.5 times and a P/E-to-growth (PEG) ratio of 0.7.

Any PEG below one suggests that a share is undervalued.

The stable nature of arms spending has made defence stocks traditional lifeboats in tough times like these. But the sector’s appeal is even greater today (in my opinion) as industry consolidation ramps up and global rearmament accelerates.

Chemring’s own order intake rose 187% in the year to stand at a record £1.4bn.

The company has commented that “with the new administration in the US pushing for significant increases in NATO defence spending and with EU member states recognising the critical need to scale up and co-ordinate defence production across Europe, the market opportunity for Chemring continues to grow“.

Reduced arms spending from the US remains a threat. But I believe on balance it’s worth serious consideration in geopolitically-uncertain times.

The post 2 rock-solid growth shares to consider as economic storm clouds gather! appeared first on The Motley Fool UK.

Here’s one I think looks like a brilliant bargain.

Pawn star

Pawnbrokers like H&T (LSE:HAT) can be classic lifeboats for investors during troubled times. Demand for their credit services typically booms when consumers struggle to source money elsewhere. People also often turn to the second-hand goods they sell when inflation rises and their disposable incomes shrink.

Finally, these companies tend to deal heavily in gold, an asset which often spikes in value during tough economic periods (just today the precious metal struck new record peaks of around $3,031 per ounce).

Profits boom

These qualities were on full display when H&T released its full-year trading statement on Tuesday (18 March). Pre-tax profit leapt 10% in 2024, to £29.1m, due to continued strength for its core pawnbroking operations.

H&T’s pledge book — its record of loans and pawned items — leapt 26% year on year to £127m. The business said it enjoyed “record levels of new customers borrowing from us for the first time“.

Boosted by the buoyant gold price, H&T also saw revenues and gross profits from retail jewellery and watch sales leap 27% and 34% respectively. These came out at £61.8m and £19.3m last year.

Trading landscape

H&T’s clearly making impressive progress in these favourable times. With 285 stores, it’s the UK’s largest pawnbroker and it continues to grow market share.

Can it continue to make waves though? Even if it continues to make strong strategic progress, sales and profits could be undone by an uptick in the domestic economy that dents loan and retail demand.

Yet for the moment, trading conditions look set to remain favourable over the short term at least. This is reflected by recent GDP downgrades by the Organisation for Economic Co-operation and Development in recent hours.

The body now expects UK growth of just 1.4% in 2025 and a slower 1.2% next year. I feel estimates could be set for further downgrades too, as business confidence dives and US trade tariffs loom.

Cheap as chips

Through steady expansion, H&T remains committed to capitalise on this opportunity, not to mention drive long-term growth. It added seven new stores to its estate in 2024 and embarked on a further 48 store refits.

A strong balance sheet gives the business scope to continue investing for growth while continuing to reward shareholders with a growing dividend too. In 2024, it hiked the total payout 6% year on year to 18p per share.

For the current financial year — which H&T has changed the end date of to September — the business trades on a forward price-to-earnings (P/E) ratio of 7.1 times. With a 5.1% dividend yield too, H&T’s share price offers excellent all-round value, in my view.

Despite the threat of rising costs and a possible change in economic conditions, I think H&T shares are worth serious consideration at current prices.

The post Looking for cheap stocks to buy? Here’s one of my favourites to consider for ISA season appeared first on The Motley Fool UK.

Bank of Georgia

Much will depend on the turbulent political landscape in Georgia. But if the Eurasian country can avoid descending into chaos, Bank of Georgia (LSE:BGEO) should keep delivering ripping earnings growth over time.

At the moment, City analysts are maintaining their bullish forecasts. They think profits will surge 10% in 2025.

This leaves the bank on a forward price-to-earnings (P/E) ratio of 3.6 times, one of the lowest ratings among all of London’s listed banks.

Allied with a 6.8% dividend yield for 2025, the bank offers really decent value in my opinion.

Bank of Georgia’s powerhouse brand and move into digital banking continues to push earnings through the roof. Adjusted profit (excluding its Armenian operations) leapt 17.3% in the third quarter.

A blend of low market penetration and strong economic growth means things look good for the FTSE 250 firm next year.

ITV

Commercial broadcasters like ITV (LSE:ITV) are highly sensitive to economic conditions. If the UK economy continues to struggle, advertising revenues may remain under pressure.

However, there are reasons to be optimistic for the Love Island maker in the New Year. A likely fall in interest rates should bolster advertising sales, which were up 6% in the nine months to September.

Strike action that dogged performance at ITV Studios is also in the rear windscreen. And the popularity of its ITVX streaming platform continues to impress.

Total streaming hours here leapt 14% between January and September, pushing digital advertising revenues 15% higher.

Brokers think ITV’s annual earnings will rise 5% in 2025, meaning it trades on a forward P/E ratio of 7.7 times.

They’re also tipping modest dividend growth that drives the broadcaster’s yield to 9%.

H&T Group

Investors seeking cheap growth and dividend shares should also pay close attention to pawnbroker H&T Group (LSE:HAT).

Earnings here have risen strongly in recent years due to the cost-of-living crisis. City analysts are tipping this trend to continue with an 8% bottom-line rise in the New Year.

This leaves the firm dealing on a corresponding P/E ratio of 6.8 times. It also supports predictions of further dividend growth, resulting in a 5.3% dividend yield.

That yield’s not a showstopper like those of ITV and Bank of Georgia. But it’s still significantly better than the 3.4% average for FTSE 250 shares.

A bright outlook for gold prices, allied with ongoing pressure on consumers’ wallets, suggests revenues should remain robust. Ongoing expansion should also boost earnings growth (it had 281 shops operating as of August, up from 273 a year earlier).

Pawnbrokers like H&T operate in a highly regulated environment. So future profits are at the mercy of changes to lending rules in the UK.

But looking ahead — and certainly for 2025 — I think things are looking rosy for the company.

The post 3 cheap FTSE 250 shares to consider for growth and income in 2025! appeared first on The Motley Fool UK.

I’m looking for shares to provide me with a large and growing passive income over time. What’s more, I’m wanting stocks that trade on rock-bottom price-to-earnings (P/E) ratios. Companies with low valuations could provide me with big capital gains over time alongside decent dividend income.

Here are two such stocks I’m considering today:

Dividends are never guaranteed, but if broker forecasts are accurate, a £10k lump sum invested equally across these dividend heroes would provide a £780 passive income next year alone.

Here’s why I’m considering them for my Stocks and Shares ISA for 2025.

H&T Group

Pawnbrokers such as H&T Group could prove perfect shares to buy in 2025. With inflationary pressures persisting and the UK economy struggling, money lenders like this could remain in high demand.

Latest financials here showed pledge lending up 14% in the first half of 2024, at £146m.

As the country’s largest pawnbroker, H&T’s taking full advantage on the favourable trading environment. It had 281 stores up and running as of June, up by three from the start of 2024. And it plans to continue expanding, targeting total openings of eight to 12 this year alone.

A strong balance sheet means the company has scope to continue expanding while also paying a generious dividend. It had net assets of £181m at the halfway point of the year. And its net-debt-to-EBITDA ratio was a manageable 2.6 times. This enabled the interim dividend to rise 7.7% year on year.

As with any company, investing in H&T involves taking on risk. In this case, I’m wary that the sliding gold price could have a big impact on profits if it continues.

But on balance, I think the cheapness of its shares still makes it one for me to consider.

M&G

While H&T tends to thrive in difficult conditions, financial services businesses can suffer in periods of low growth and stubborn inflation.

In the case of M&G, net inflows stood at a significant £1.5bn in the first six months of 2024. The FTSE 100 firm faces huge uncertainty going into the new year then, given the tough economic outlook. But I don’t believe this will impact its ability to continue paying a large and growing dividend.

This is thanks to its impressive cash generation and large capital reserves. As of June, M&G Solvency II capital ratio was 210%, more than double regulatory requirements and up 7% year on year.

In a further encouraging sign, the business also lifted its cash generation at the half-time mark for 2022-2024, to £2.7bn from £2.5bn previously. Consequently, M&G interim dividend was lifted to 6.6p per share from 6.5p a year earlier.

This is a share I’m considering buying to hold for the long term. I think demographic changes could drive demand for its wealth, savings and protection products through the roof. And profits and dividends may follow.

The post £10,000 to invest? These 2 cheap dividend shares could deliver a £780 passive income for me appeared first on The Motley Fool UK.

Here are three of my favourites:

As you can see, each trades on a rock-bottom P/E ratio and PEG multiple. A reminder that a PEG below 1 indicates a stock’s undervalued.

City brokers think these shares will deliver impressive near-term profits growth. I’m confident their bottom lines will grow rapidly over the long term too.

Here’s why I think they’re top stocks to consider.

Gold rush

Serabi Gold’s one of many gold miners whose profits are tipped to rocket this year. Yellow metal prices have just hit record highs above $2,500 an ounce. Encouragingly, many gold analysts think further gains are coming, as interest rates reverse and the geopolitical landscape worsens.

This isn’t the whole story with Serabi however. This particular miner — which has assets in Brazil — is benefitting from rising production as it ramps up activity at its Coringa mine.

The Alternative Investment Market (AIM) business couldn’t have picked a better time to increase output. And, pleasingly, production from Coringa’s set to keep rising all the way to 2026 too.

Metals mining’s an unpredictable business and profits-sapping production problems can be common. However, I believe this threat’s more than baked into Serabi’s sub-1 P/E ratio.

A top stock for tough times

Pawnbroker H&T Group will also benefit if gold prices continue appreciating. The business already looks set to continue performing strongly as the UK economy splutters.

Revenues and pre-tax profits here rose 11% and 12.5% respectively in January to June, as people pawned their goods to raise cash. The company’s pledge lending rose 14% in the period as well.

H&T’s rapidly expanding to capitalise on these favourable near-term conditions, and to deliver solid growth further out. It added eight new stores to its estate in the first half to take the total number of outlets to 281.

Profits could suffer if industry regulations change later down the line. But today, things are still looking good for the AIM firm.

Spectacular value

Commercial broadcaster ITV’s vulnerable to a fresh downturn in the advertising market. But with marketing spending improving — ad revenues here rose 10% in the first half — even risk-averse investors might want to consider opening a position.

This is a growth share that offers exceptional value, in my opinion. As well as carrying those ultra-low P/E and PEG ratios, ITV shares offer an extra bonus in a 6.2% forward dividend yield.

I think the FTSE 250 company has excellent long-term investment potential. Through its ITVX platform, it’s making brilliant progress in the fast-growing streaming segment.

With Hollywood strikes over and the ad market improving, sales at ITV Studios should also start growing strongly again. Annual organic revenues are tipped to grow 5% on average between 2021 to 2026, ahead of the broader market.

The post 3 of my favourite cheap growth shares for September! appeared first on The Motley Fool UK.

UK share prices have (broadly speaking) enjoyed healthy gains in recent weeks. But years of underperformance mean that many top stocks continue to trade at rock-bottom prices.

Old Mutual Limited (LSE:OMU) and H&T Group (LSE:HAT) are two bargain stocks I think are worth serious consideration today.

As the table below shows, their current dividend yields soar above the market average. The average yield for both companies stands at an impressive 5.7%.

And they trade on rock-bottom price-to-earnings (P/E) ratios.

Here’s why I think they’re worth a close look today.

Old Mutual

Old Mutual has been selling financial products for 178 years. It has operations in 14 African countries, and sources the majority of its revenues from South Africa.

I believe it has considerable scope to increase profits as population sizes and wealth levels across its markets grow. With just 48% of African people currently using banking services, there’s plenty of business for the industry’s biggest players like this to win.

So why do I like Old Mutual specifically? Firstly, I like its exposure to multiple sectors like banking, life insurance and asset management. This gives it multiple opportunities to increase long-term earnings, while also reducing dependence on one product area.

I’m also a fan because of its incredible brand power. In 2023 it was deemed the world’s strongest insurance brand, according to Brand Finance.

Trading here is linked closely to the health of South Africa’s economy. This in turn leaves it vulnerable to changes in commodity prices.

But given its low earnings multiple, I think this risk is more than reflected in its current share price.

Old Mutual’s impressive value is further illustrated by its price-to-book (P/B) value. Any sub-1 reading indicates that a share is trading at a discount to the value of its assets.

H&T Group

H&T is the UK’s biggest pawnbroker, with 280 stores zig-zagging the UK. It also provides other services like foreign currency exchange, money transfer and precious metals dealing.

It’s doing a roaring trade at the moment, and in April 2024 demand for its pledge loans hit record levels. This is perhaps unsurprising given current economic conditions.

Naturally, revenues here could come under pressure if Britain’s economy bounces back. But from a long term perspective there’s a lot I still like about H&T shares.

I’m especially excited by its commitment to steady expansion. It opened 11 new stores in 2023, and plans to cut the ribbon on another eight to 12 this year.

With a strong balance sheet — its net debt to EBITDA ratio was just 0.9 as of December — H&T looks in good shape to continue expanding without compromising its progressive dividend policy.

Indeed, H&T has a terrific record of dividend growth, as the chart above shows. Shareholder payouts were slashed in the middle of the pandemic but have sharply rebounded from those levels.

Like Old Mutual, I think the company could be a great way to make a market-beating dividend income at low cost.

The post 5.7% dividend yield! 2 dirt cheap passive income shares to consider in June appeared first on The Motley Fool UK.

Selecting companies with extensive operations outside Britain could help investors lessen this problem. But predictions of weak overseas growth also makes it a difficult task. The International Monetary Fund reckons GDP growth will slow to 3% next year, from 3.5% in 2023.

That said, it’s not impossible to dig out brilliant growth shares for the coming year. Here are three I expect to thrive in this tough landscape.

FRP Advisory Group

AIM-listed consultancy FRP Advisory Group (LSE:FRP) is a classic counter-cyclical buy. It specialises in areas including bankruptcy, restructuring, capital raising and insolvency, fields that experience high demand during downturns.

This is why City analysts expect earnings here to rise 18% year on year in 2024. Such optimism is perhaps no surprise given the strength of recent trading.

Revenues and underlying adjusted EBITDA soared 19% and 34%, respectively, between January and June as interest rate hikes boosted the number of restructuring cases. The persistence of higher-than-normal rates next year should keep the company busy too, as businesses roll off cheaper credit arrangements.

Regulatory changes could dent profits, while heavy competition is another threat to the company. But, on balance, I’m expecting it to perform strongly in 2024.

H&T Group

Tough economic periods also bode well for pawnbrokers such as H&T Group (LSE:HAT).

In a sign of the stress facing the UK economy, the Office for Budget Responsibility has just slashed its 2024 GDP growth forecasts to 0.7%. That’s less than half the 1.8% predicted in March. In this environment the number of people pawning items to make ends meet should remain robust.

Latest financials from H&T showed gross lending rose 22% during the six months to June. Meanwhile its pledge book rose £28m from the same 2022 period, to £113m, thanks to growth across all its regions.

City analysts expect annual earnings at the AIM-listed company to jump 23% year on year in 2024. I’d buy the UK share even though profits could take a hit if gold prices recede.

B&M European Value Retail

Value retailers like B&M European Value Retail (LSE:BME) could also be shrewd stocks to buy as under-pressure consumers try to stretch their budgets as far as possible.

City analysts certainly expect earnings at the FTSE 100 firm to accelerate over the short term. They predict growth of 2% for the current financial year (to March 2024) and improve to 8% for the following 12-month period.

Sales and revenues will be boosted by the retailer’s aim to supercharge its store portfolio. It opened 28 gross new stores in the UK and France between April and September. B&M hopes to eventually have 1,200 stores in operation, up from around 950 today.

Rising energy and labour costs may strain B&M’s bottom line. However, I still think there’s plenty of scope for strong and sustained earnings growth.

The post 3 growth stocks I’d buy to try and build wealth in a tough 2024! appeared first on The Motley Fool UK.

The National Institute of Economic and Social Research (NIESR) has in recent days warned of “even chances that GDP growth will contract by the end of 2023 and a roughly 60% risk of a recession at the end of 2024”. The think tank has also said Britain faces five years of “lost” economic growth.

Here are three stocks I think could prove useful additions to my portfolio in this tough climate.

Grainger

Buying build-to-rent businesses like Grainger (LSE:GRI) is a good idea right now, I feel. This is despite the impact of higher-than-usual construction costs on profits.

Not only is this because rent collections stay relatively stable during economic booms and busts. It’s because a chronic shortage of rental properties is driving rental income through the roof. Like-for-like rent growth at FTSE 250-listed Grainger came in at 7.1% during the eight months to May.

Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors (RICS), has said that “rents are likely to continue rising sharply” amid a lack of supply. Weak housebuilding rates and a steady departure of buy-to-let investors look set to persist too.

B&M

Value retailers are likely to be in high demand as consumers continue to feel the pinch. This makes B&M European Value Retail (LSE:BME) a top buy, despite the problem of rising labour costs.

Latest financials showed like-for-like sales at its flagship B&M stores rose 9.2% between April and June. The company is rapidly expanding to capitalise on the favourable trading environment too. It plans to eventually have 950 B&M stores up and running, up from just over 700 today.

The plunge of fellow value chain Wilko and its 400 stores into administration provides the FTSE 100 firm with an added boost. I’m confident it will thrive despite its lack of online presence that could see it lose business to supermarkets and general retailers like Amazon.

H&T Group

Pawnbrokers like H&T Group (LSE:HAT) are also trading strongly as people try to raise a little extra cash. Profits at Britain’s largest operator soared 31% in the first half of 2023, data last week showed. This was driven by a 14% increase in its pledge book (which includes short-term loans linked to customers’ belongings).

Through its jewellery retail and gold scrap business, the AIM company also provides investors with handy exposure to the precious metals markets. Should the global economy struggle and inflationary pressures persist, prices of gold (which are currently perched near record highs) might head even higher.

I’m also impressed by the company’s travel money division where foreign currency transaction volumes sit at record levels. I’d buy H&T shares, even though it faces high competition from money lenders.

The post 3 FTSE 100, FTSE 250 and AIM shares to own as the UK economy sinks appeared first on The Motley Fool UK.

[Just beginning your investing journey? Check out our guide on how to start investing in the UK.]

Agronomics 

What it does: Agronomics invests in a range of companies in the field of cellular agriculture.

By Ben McPoland. Agronomics (LSE: ANIC) manages a portfolio of start-ups focused on cellular agriculture. This is the production of animal-based products from cell cultures rather than directly from animals.

In practice, that means milking microbes instead of udders and growing meat and fish rather than rearing animals and overfishing oceans. It’s no secret that husbandry uses extraordinary amounts of water and contributes to greenhouse gas emissions.

Additionally, soaring food prices mean that nations need greater food security. And meat grown from cell cultures doesn’t need huge amounts of grain or fertilisers from, say, Ukraine.

This technology is not science fiction. The first lab-grown chicken product was approved for human consumption in the US last year. This chicken is biologically indistinguishable from meat taken from a slaughtered bird. So taste isn’t an issue and more products are coming.

Of course, consumers may reject this food despite it being more nutritional and (eventually) cheaper. However, consulting firm McKinsey estimates this market could reach $25bn by 2030.

At 12p per share and a market cap of £120m, I think Agronomics looks attractive.

Ben McPoland owns shares in Agronomics.

H&T 

What it does: H&T is the UK’s largest pawnbroker. It offers short-term cash loans backed by items of value such as gold jewellery or watches. 

By Harshil Patel : Pawnbroking is a hot sector right now. And with over 265 stores, small-cap stock H&T (LSE:HAT) is the biggest player. More stores are expected this year too. 

This growth strategy is backed by soaring profits. Gross profit in 2022 rose by 33% to £102m. The impact of inflation on consumer finances boosted demand for short-term loans. At the same time, many competing loan products were withdrawn from the market. 

That puts H&T in somewhat of a sweet spot.  

In addition to pawnbroking, it also scraps unwanted gold, sells jewellery and provides holiday money. All these areas are experiencing a growth spurt.  

Gold prices have jumped since H&T’s last trading update. And travel money should get a boost as the holiday market bounces back.  

Bear in mind that if inflation slides, demand for its loans could fall back to historical norms. 

That said, with price-to-earnings ratio of just seven, and dividend yield of 5%, this share looks like a solid prospect to me.  

Harshil Patel does not own shares in H&T. 

Speedy Hire

What it does: Speedy Hire provides equipment and plant hire services to the UK and Ireland’s construction, infrastructure, and industrial markets.

 By Gordon Best. Investors in 2023 may struggle to find areas less impacted by the possibility of a recession. One thing that can be relied upon historically is expenditure in infrastructure and construction, as governments seek to stimulate the economy.

One potential beneficiary is Speedy Hire (LSE:SDY), which supplies construction equipment. Revenue has been steadily increasing over the past five years, with the company profitable since 2021.

Speedy Hire’s growth prospects also look positive. When we compare the price-to-earnings ratio of 6.3 times to the industry average of 59.8 times, there could be a great opportunity for investors.

Investments in the construction sector can be less volatile, since work pipelines are likely to be well understood, and the company has a relatively low debt-to-equity ratio, indicating it is not highly leveraged. 

Dividends have been rather unpredictable, but in a growing, stable sector of the market, this small-cap stock has potential.

Gordon Best does not own shares in Speedy Hire.

The post Best British small-cap stocks to buy in May appeared first on The Motley Fool UK.

H&T Group

Dividend yield: 5%

Pawnbrokers like H&T Group (LSE:HAT) can help investors protect their wealth during tough times like these. Pre-tax profits rose 43% in the six months to June, latest financials showed. The likelihood of a long recession suggests demand for its services should remain strong.

H&T plans to rapidly expand to maximise this opportunity too. In September, it raised £17m via a share placing to help it keep “growing the pledge book and expanding the store estate”. The business increased store numbers to 261 in the first half, a yearly increase of seven.

I also like this AIM business on account of its strong dividend coverage. Predicted payouts are covered 2.5 times by expected earnings, providing a wide margin of safety for investors.

I think H&T is a great way for me to de-risk my portfolio, even though future changes to FCA regulations could threaten profits.

Vodafone Group

Dividend yield: 7.6%

Telecoms businesses enjoy broadly stable profits at all points of the economic cycle. Businesses need to remain connected and consumers can’t bear giving up their mobile phones.

This is why I’d buy Vodafone Group (LSE:VOD) shares for what could be a difficult 2023. I’d buy it for dividends even though ultra-competitive market conditions pose a threat to earnings.

You see, the FTSE 100 business is an impressive cash-generating machine. This gives it the firepower to pay big dividends year after year and even during tough periods. Vodafone expects to deliver adjusted free cash flow of at least €5.3bn in the current financial year (to March 2023).

Vodafone gave its balance sheet an extra boost last week too by agreeing to sell a stake in its towers unit to KKR and Global Infrastructure Partners. The deal will raise at least €3.2bn for the company to pursue its growth programmes and furnish its shareholders with market-beating dividends.

Bank of Georgia Group

Dividend yield: 8.5%

UK-focused banks like Lloyds and Barclays face a perfect storm. The Bank of England thinks Britain’s GDP will be in decline for the next 18 months, or so. It has also suggested that interest rates might not rise as high as the markets expect.

This is why I’d rather buy banking stocks that operate in overseas territories. And I believe Bank of Georgia (LSE:BGEO) is a great one to buy to boost my passive income next year.

Unlike the UK, Georgia isn’t a mature market when it comes to financial products. This gives it plenty of room to grow as GDP in the Eurasian nation soars. The economy grew 10.2% in the first nine months of 2022, government data shows.

I’m also attracted to Bank of Georgia because of its excellent dividend cover. 2023’s estimated dividend is covered 3.4 times by expected earnings. I’d buy it even as it faces stiffening competition from FTSE 250 rival TBC Bank.

The post 3 top dividend shares I’d buy for a tough 2023 appeared first on The Motley Fool UK.