6%+ dividend yields! These are my top shares to buy before the market recovers!

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I’m looking at shares to buy before the market recovers. Global stocks are actually nearing a two-month high, but they’re still down on last year. In fact, UK stocks specifically have been trading at lower valuations for some time amid concerns about Brexit.

But when share prices go down, dividend yields go up. And the dividend yield I get will always reflect the price I paid for the stock, regardless of whether the share price goes up or down.

So here are stocks with sizeable dividend yields that I’d buy more of for my portfolio right now.

Bank of Georgia

The Bank of Georgia (LSE:BGEO) operates in the high-growth market of Europe-focused Georgia and currently has a 6% dividend yield on the back of a stellar year in 2021. The Bank of Georgia, and its peer TBC Group, are much less popular than western peers, and tend to trade with price-to-earnings ratios that are considerably lower than developed market banks.

The lender has an impressive history of paying sizeable dividends relative to the share price, with the exception of during the pandemic. But the dividend is largely sustainable and it reflects the high growth environment that it operates in.

The Georgian economy grew an impressive 10.5% between January and June. And this isn’t just a good few months. Georgia is a democratic country with market economy which works closely with institutions such as the EBRD to enhance long-term growth objectives.

The economy may expand more slowly towards the end of the year amid a war between two of its largest trading partners. That’s what the forecasts say. But this is yet to be seen. Also, Tbilisi is currently filled with Russian émigrés. That won’t be bad for business.

Legal & General

The Legal & General (LSE:LGEN) share price has been on the rise in recent weeks, but its still considerably below its 52-week high. The stock reached 309p in late 2021, but now trades around 268p. The share price has actually be pretty volatile, and was largely impacted by the Russian invasion of Ukraine before recovering.

The current dividend yield is tasty 6.7%. Last year, the coverage ratio — a metric that indicates the ability of a firm to pay the dividend — was a fairly healthy 1.85. Although a coverage ratio above two would be healthier, L&G generates plenty of cash so last year’s ratio shouldn’t be problematic.

For 2022, the British multinational financial services and asset management company declared a full-year dividend of 18.45p, up 5% on the year.

I’m generally pretty bullish on the outlook for Legal & General. It’s a household name and I think that’s positive for preventing capital outflows and attracting customers in the long run.

But it’s also worth noting that Legal & General’s exposure to the housing market might be a source of pain in the coming months amid a forecast economic downturn.

The post 6%+ dividend yields! These are my top shares to buy before the market recovers! appeared first on The Motley Fool UK.

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James Fox owns share in Legal & General and Bank of Georgia. The Motley Fool UK has no position in any of the shares mentioned. 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.