A High Dividend Stock and Income Generating ETF to Consider in October!

Are you looking to invest in London Stock Exchange this month? Here’s a dirt-cheap dividend stock and booming exchange-traded fund (ETF) that I think is worth considering.

Bank of Georgia Group

Bank of Georgia(LSE:BGEO)’s share price has fallen by double-digit percentages in recent weeks. I think this represents a great dip buying opportunity for investors looking for value stocks with huge dividend yields.

For 2024, the FTSE250 the bank trades on a forward price-to-earnings (P/E) ratio of 3.1 times. As for dividend yields, they stand at 7.6% and 8.1% for this year and next year, respectively. To put this into context, both numbers are more than double the FTSE 250 share average.

The Bank of Georgia crisis reflects growing concerns about growing political uncertainty in the country and, more particularly, its future relations with Russia and the European Union. These issues will naturally have significant implications for the Georgian economy and the businesses operating there.

Still, I would argue that Bank of Georgia’s lowest price-to-earnings ratio of 3 times reflects any danger to its earnings.

Overall, I think the bank remains a great way to capitalize on the growing demand for financial products in its emerging market. Profits rose 16% in the first half of 2024 as lending levels soared, according to the latest financial data.

I’m also encouraged by its acquisition of Ameriabank this year. This gives it significant exposure to Armenia, another of the region’s fastest-growing economies.

While it’s not without risk, I think the company could prove to be a great long-term prospect.

iShares Gold Producers ETF

Prices of precious metals have exploded in 2024. Gold, for example, has reached record highs in several currencies and, in sterling terms, surpassed the £2,000 an ounce mark for the first time at the end of the last month.

Silver is also on a tear, and on a dollar basis, it hit its highest level since 2012 in recent days.

I think investing in a gold-based exchange traded fund (ETF) might be a good idea in this climate. The one that caught my attention is the iShares Gold Producers ETF (LSE:SPGP), which has a relatively low annual cost of 0.55%.

As its name suggests, it invests in gold mining companies rather than tracking the price of bullion itself. This has a huge advantage for me as an investor because many of the mining companies he owns pay a dividend that the fund automatically reinvests.

On the other hand, purchasing this mining-focused gold ETF exposes me to the problematic nature of metals production. However, as the fund invests in a wide range of different companies, the risk of such issues on my overall returns is reduced, but not eliminated.

Of course, there is no guarantee that gold prices will continue to rise. However, a combination of central bank rate cuts, lingering concerns over the US and Chinese economies and escalating unrest in the Middle East means the precious metal could continue to soar in October and beyond.