Finding reliable investments that can deliver consistent returns in uncertain macroeconomic times is more crucial than ever right now. After a massive rally, the broader market is finally seeing a correction, and many investors are already spooked. Thus, it might make sense to consider adding exposure to top dividend growth stocks.
These stocks can be very good friends in turbulent markets, since dividend growth stocks usually have some of the most solid underlying businesses. Not only are these companies seeing a lot of growth (for which Wall Street will keep a premium on the stock), they are also paying investors a yield to hold them through any storm that may come.
That’s why dividend growth stocks fit the bill perfectly right now. Here are three to consider right now.
Kaspi.kz (KSPI)
Kaspi.kz (NASDAQ:KSPI) operates a leading fintech and e-commerce ecosystem in Kazakhstan. The company has been firing on all cylinders lately, delivering impressive growth across its Payments, Marketplace, and Fintech platforms.
I believe Kaspi.kz is one of the most exciting fintech growth stories out there. In Q2 2024,the company’s revenue surged 36%, and net income jumped 25% year-over-year, driven by the rapid adoption of its Super App. Kaspi’s Marketplace GMV soared 62%, with verticals like e-commerce, e-grocery, and Travel posting stellar numbers. Analysts are bullish on the stock, too. New Street Research initiated coverage last month with a $175 price target. That price target implies 35% upside from here. Not bad.
In addition, Kazakhstan’s unique position as a gateway between Russia and the world is fueling Kaspi’s growth. With more Russian businesses flocking to the country, Kaspi is capitalizing on booming demand. The stock has climbed 33% over the past year, and I think there’s plenty more runway ahead for further growth. On top of that, Kaspi’s dividend yields 5.5%. In my view, Kaspi.kz looks like a gem for growth and income.
Opera (OPRA)
Opera (NASDAQ:OPRA) is a browser company that has been making waves in the tech industry lately. The company has seen impressive growth and innovation, particularly with its niche-focused offerings like the gamer-centric Opera GX browser. In Q1 2024, Opera reported revenue of $101.9 million, a 17% year-over-year increase, and raised its full-year outlook.
Analysts have taken notice, with a consensus moderate buy rating and an average price target of $23.50, representing nearly 87% upside. The stock looks undervalued at a forward price-earnings ratio under 14-times, especially considering analysts expect its earnings per share to double and revenue to grow 13% annually over the next four years. Opera’s 6.6% dividend yield is the cherry on top.
However, it’s not all roses for the company. Opera still struggles with brand recognition compared to giants like Chrome. While Opera GX has gained traction with gamers, overall market share remains low.
Nonetheless, betting on the underdog could pay off in the long-run. That’s my take on this high-risk, high-reward pick right now.
Turkcell (TKC)
Turkcell (NYSE:TKC) is a leading mobile and digital services provider in Turkey. The company has delivered impressive financial results, with revenue growing 11.8% year-over-year in Q1 2024, driven by strong ARPU growth and a larger subscriber base.
Impressively, TKC stock has soared 67% over the past year as of July 31, 2024, thanks to the company’s stellar performance. Turkcell is seeing hyper-growth levels of revenue expansion, while margins rapidly widen. Analysts expect revenue to surge 40% this year to $4.6 billion and reach nearly $10.4 billion within three years.
Of course, Turkey’s high inflation remains a concern. However, the Turkish economy continues to grow at an impressive pace, and this company seems to have adapted to inflation well. The stock provides a juicy dividend yield of nearly 4%.
On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
