Geopolitical tension, higher oil prices, and renewed inflation worries are again front and center, and that mix can unsettle even experienced investors. Periods like this often push attention toward companies that regularly return cash to shareholders and have a track record of keeping those payouts well covered. This article uses an Inflation-Resilient Dividend Stocks screener to highlight 3 stocks that appear closely exposed to the latest Middle East driven inflation story. Each one has its own set of potential strengths and risks, and the sections ahead explain how they might fit, or not fit, into an income focused portfolio.

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Dollar General (DG)

Overview: Dollar General is a discount retailer that focuses on lower price everyday essentials, from groceries and household items to basic apparel and seasonal goods, across thousands of stores in the southern, southwestern, midwestern and eastern United States.

Operations: Dollar General generates about US$43.1b in revenue primarily from its retail store operations across its discount store network.

Market Cap: US$23.6b

For investors concerned about inflation linked to higher oil prices and Middle East tensions, Dollar General sits at the intersection of value focused shopping and regular dividend income. The company has recently reported higher earnings, firmer profit margins around 3.6%, and raised its FY26 guidance and dividend, while still trading at a P/E below both peers and the wider US consumer retail sector. At the same time, rising labor and freight costs, slower long term earnings trends, and intense competition from big box and online retailers keep pressure on execution. How this discount chain balances store expansion, private label growth, and digital investments against those risks is what really deserves a closer look.

Rising earnings, firmer margins and a P/E below peers suggest Dollar General’s story might be less fully priced than it looks. The real twist sits in the analysis report for Dollar General

American States Water (AWR)

Overview: American States Water is a regulated utility that supplies water and electricity to customers in California and provides water and wastewater services to military bases across the United States, giving it a mix of long term regulated revenue and contracted income backed by essential services.

Operations: The company generates about US$475.2m from Water, US$60.9m from Electric, and US$143.2m from Contracted Services, all within the United States.

Market Cap: US$3.0b

For investors watching inflation risks tied to higher oil prices and possible rate hikes, American States Water offers a combination of essential service demand, a long dividend history, and regulated pricing that can help pass through higher costs. The business is investing heavily in its network and new communities, which supports future earnings potential, but this comes with higher debt, infrastructure execution risk, and a dividend that is not well covered by free cash flow. In addition, the valuation screens as richer than many water utilities, so the key question is whether the quality of earnings, regulatory support, and inflation resilience are enough to justify paying a premium for this stock.

American States Water’s rich valuation and essential service profile suggest that investors may be overlooking how its risks and strengths fit together. The real tension becomes clearer in the 3 key rewards and 2 important warning signs

North West (TSX:NWC)

Overview: North West is a long established retailer that supplies food, fuel and everyday essentials to remote and underserved communities across northern Canada, rural Alaska, the Caribbean and the South Pacific, often acting as the primary full service store and provider of financial and pharmacy services in these areas.

Operations: North West generates about CA$1.5b of revenue in Canada and CA$1.1b from international markets, giving it a roughly balanced mix between domestic and overseas operations.

Market Cap: CA$2.5b

North West sits in a niche that many investors overlook, with essential goods in remote regions, a long corporate history and a current dividend yield of about 3.1% that has been held through recent macro headwinds. The stock trades well below some valuation estimates, while earnings growth has been modest and revenue growth projections trail the wider Canadian market. This raises the question of whether its 5.4% net margin, solid ROE and experienced, fully independent board are being fairly reflected in the current price. When combined with exposure to oil linked regions like Alaska, rising freight costs tied to Middle East tensions and a funding model that relies on external borrowing, the risk reward trade off becomes more nuanced than a quick glance suggests.

North West’s mix of remote essential services, a 3.1% yield and questions around whether its current price fairly reflects that 5.4% margin and ROE is not fully appreciated, and the analysis report for North West may reveal why that gap exists.

The three stocks here are a starting point, and the full Inflation-Resilient Dividend Stocks screener includes 2 more companies with equally compelling inflation resilience and dividend narratives that could round out your watchlist. Use Simply Wall St to identify, filter and analyze the exact catalysts, payout profiles and business stories that match your highest conviction ideas so you can focus on the income opportunities that fit you best.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.