Just released: our 3 best dividend-focused stocks to buy now [PREMIUM PICKS]

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• Previous periods of economic stress have been generally positive for discount retailers and there is now little reason to believe that this latest period of rising inflation and declining disposable income will be any different.
• That’s good for B&M, whose store numbers and customer awareness (especially in areas outside the traditional Northern heartland) have grown rapidly during the pandemic as competitor stores close.
• All three of the company’s divisions – B&M UK, Heron Foods, and B&M France – performed well with strong sales and high cash flow. While the margin may decrease from the level raised by the pandemic, it is still higher than pre-pandemic, which shows the benefits for all the increased consumer awareness because the foot remains elevated at the previous level.
• The dividend yield at 16.5p is 3.4%. But add in an additional 20p per share special payment due in February and the yield increased to 7.7%. Now, investors don’t have to count on the special dividend that continues to be an annual occurrence, but B&M’s board remains committed to generating excess cash for shareholders when it considers leverage to be too low.