We are entering an almost unprecedented global situation created by three converging - and interconnected - crises. As we approach 2023, the world is facing major food shortages, a commodity crisis, and a financial crisis. The question focusing on many minds is whether it’s possible to make money as an investor in the markets during these challenging and unpredictable times.

The answer is yes, as long as there is a shift away from our traditional criteria when we consider which companies make for a great investment. It's no longer about investing in companies that are expected to beat their earnings or whose fundamentals are great, or whose technicals look impressive on the charts. Shrewd investors are digging much deeper and looking beyond the traditional indicators of a company’s potential. The key is innovation!

There is no doubt that we are in a time that we have never seen before, with three simultaneous crises threatening the global economy: food, commodity, and financial crises. It's now important to focus on the future and the challenges that await us as we enter these turbulent times. Investors need to know which stocks will be able to weather the storm.

Only companies that offer actual solutions to these very crises we are encountering will reward investors. The key to identifying the companies that can potentially save the day is to look beyond their fundamentals and charts. Sure, these are very important and should never be overlooked, but smart investors are shifting to a deeper focus on companies’ track records for innovation and their innovative solutions to the challenges the world is experiencing here and now: namely food shortages, a financial crisis and a commodity crisis.

We must ask ourselves which companies are giving real solutions to these problems and moving forward. Before we invest in a company, we need to dig deeper into the company's innovation, innovative solutions and initiatives. How can we find these? It's simple. The new journey an investor should take before investing in what we call an innovative company should include:

1.    Reading up about the company's innovation efforts.

2.    Check out their websites and see what they are writing about on their blog or "solution pages".

3.    Evaluate what steps these companies are actually taking in terms of innovation now, and are planning to take in the near future.

We will have to ask ourselves three key questions:

●     Is the company’s culture of innovation cutting edge?

●     Is it revolutionary enough to make a difference?

●      Are they answering the demands and needs of our current crises?

If the answers are an unequivocal yes - and the company also has adequate capitalization and financial stability - then that company would make an excellent choice as an investment.

In times of crisis, it’s vital to examine a company's underlying actions and corporate mindset.  These include the company’s attitude towards innovation, its ability to identify and exploit opportunities, and how well it can adapt to tough markets. Investors need to identify companies that have the technical expertise, resources, and experience to tackle the growing food and commodity crises, and weather all financial storms. If history teaches us one thing, it's that adaptable and innovative people survive tough times.

Innovative Dividend Stocks in a Global Crisis

We’ve identified three companies with a reputation for innovation, enthusiasm for new ideas, and the ability to rapidly launch new products and exploit new opportunities. They all have the potential to become dividend stocks at a time when other, less innovative companies are likely to disappoint investors.

●     ICL Group Ltd.

●     John Deere

●     Lindsay Corporation

All three companies are well established in their own fields. Where we think they are unique is in their ability to deliver effective solutions that tackle aspects of the food crisis or the commodities crisis - and to generate wealth during a financial crisis.

History Shows that Innovators are Winners!

You can look at this phenomenon through the lens of history. If we take a look back into history, then it becomes clear that when times are tough, innovative companies thrive.

During the great depression of 1929-1939, companies like Coca Cola and Procter & Gamble were able to grow because they had their eyes on the future. They saw a bigger picture, rather than just focusing on short-term profits. The companies realized the importance of improving people’s lives by giving them something more than just an ordinary product or service.

This was also true during World War II when there were shortages of all kinds of products, including food supplies and basic essentials in Europe and North America due to wartime rationing. Innovative companies like Nestle (which makes Nescafe) responded to the challenges, increasing choices for consumers and making huge profits in the process!

The Global Markets in the Run Up to 2023

As we approach 2023, there are several key concerns for economists and investors. There’s no need to explore them in detail, but a brief summary will be useful before we look at possible investments.

There are no stand alone crises. All the current threats to the global economy are interlinked and interconnected, but we can broadly categorize the issues.

1. The global food crisis
2. The commodity crisis
3. The financial crisis.

The Global Food Crisis

The emerging global food crisis is partly due to extreme weather conditions and partly due to the war in Ukraine. Major crop producing regions experienced severe droughts during 2022. Harvests are poorer than usual and food prices are expected to rise. The war in Ukraine - the breadbasket of Europe - has also disrupted harvests. Ukraine supplies many vulnerable countries with staple foodstuffs, specifically grains and vegetable oils. The consequences of war-driven food shortages/rising costs may be disastrous at both national and regional levels.

The Commodity Crisis

The war in Ukraine is placing severe strains on fuel supplies to Western Europe. Many informed commentators are talking in terms of fuel rationing, reduced industrial output, and a winter of discontent in major economies like Germany. National energy policies that focus on green energy and a fundamental shift away from fossil fuels are also driving up energy prices and have categorically failed to deliver energy security. Current OPEC production policies are also exacerbating the commodity crisis.

The Financial Crisis

Inflation is a serious and chronic problem in the US, UK, and EU. It now seems likely that the major economies will slip into recession at a time of spiraling energy and food costs. Modern economies rely to a large extent on consumer spending. A public whose disposable income is eroded by inflation - or even stagflation - and a rising cost of living won’t buy consumer goods.  If the worst predictions are realized, we will face a perfect storm of financial problems, with few obvious solutions. The current political tensions and the global insecurity generated by the war in Ukraine will further undermine market confidence.

Thinking Beyond Technical and Fundamental Analysis

As we face a complex and multi-level global crisis, we need to become smarter in our analysis of investment opportunities. Traditional technical and fundamental analysis alone are no longer reliable methods to identify stocks that would make a great investment. Investors need to identify truly innovative and dynamic companies that can rapidly adapt and increase their profits.

The key to identifying solid investment prospects in a deep and sustained bear market is to try and understand a company’s actual culture. The easiest way to do this is to begin with the corporate website and in particular their blog and ‘solution pages’. Plenty of companies pay lip service to concepts like innovation, but the proof is in the actual projects that they are launching and the budgets that they allocate to research and development.

Genuinely innovative companies have certain characteristics that will shine through in their website and blog posts:

●      Articles and site pages display a passion for ideas and new concepts.

●      Deep technical expertise and the ability to attract and retain genuine talent.

●      Even well-established companies - of a 100 years - retain something of a startup’s enthusiasm and energy.

●      The company gives real prominence and website space to its investment hubs and R&D facilities.

●      The company actively solicits and invites approaches from people with ideas for new technologies and enterprises.

Recession Proof CompaniesThere are three companies that are definitely worth checking out if you’re looking for recession proof investments. They all have the potential not just to weather a global economic storm, but to actually prosper.

ICL Group Ltd. (NYSE: ICL) (TASE: ICL)

ICL Group is an established company that recently celebrated 100 years of profitable operations. It is superbly positioned to fill the supply gap caused by rising fertilizer prices and anticipated shortages. The company mines organic soluble fertilizers, valued for their nutritional qualities and ultra-low carbon footprint. ICL (Agmatix) also delivers innovative high tech agronomy solutions, connecting farmers to data and enabling localized, field level specialization. Their innovative processes are key to reclaiming marginal land and are scalable from small family plots, all the way up to corporate plantations and new urban farms. Investors should take a detailed look at ICL’s planet Startup Hub, R&D investing, and their new Incubator for transforming innovative concepts into functioning projects.

Deere & Company (NYSE: DE)

John Deere is a famous company, best known for its tractors and agricultural, forestry, and construction machinery. The company was founded in 1837 and is something of an American icon. John Deere may have been in existence for 185 years, but it has avoided stagnation and remains highly dynamic. John Deere is investing heavily in new electric vehicles and precision technologies. The corporation’s market and situational awareness, adaptability, and commitment to innovation suggest that it can provide practical solutions to an emerging food crisis and will actively help farmers to adapt to extreme weather and other challenges. John Deere also has the experience, resources, and global reach to cope with a global crisis and find opportunities to prosper.

Lindsay Corporation (NYSE: LNN)

The Lindsay Corporation is a well established company (founded in 1955) that has a strong reputation for innovation. In a time of record droughts, Lindsay’s innovative crop irrigation methods should be of particular interest to investors. The company has consistently demonstrated a bold approach to new technologies and the ability to transform concepts into profitable business models. The Lindsay Corporation is also well placed financially to cope with even the most extreme bear markets and has enough resources to invest its way through a recession, potentially winning a larger share of the markets.

In Conclusion

We are entering uncharted market territory, and possibly an increasingly unstable global geopolitical situation. Many economists and investors are pessimistic, predicting recessions, stagflation, and long-term bear markets. Even if the worst market assessments are born out in 2023 and 2024, there will still be companies that prosper. A new approach to investing - that goes beyond conventional technical and fundamental analysis - is deep diving into a company's innovation efforts and identifying how their innovation culture and strategies can provide profitable solutions to the current crises.