Owners of mid-cap stocks in particular had plenty to celebrate. According to Link Group, dividends among such shares — firms whose market-caps range £1.5bn-£7.4bn ($2bn-$10bn) — soared 40.1% year-on-year in 2021. That’s more than twice the pace at which FTSE 100 shares rose last year.

Link Group said: “Mid-caps benefited from cancelled dividends being restored and the cyclical upswing to which they tend to be more sensitive.”

The prospect of more strong rises in 2022 is fraught with danger as Covid-19 drags on and inflation surges. But I still think mid-cap stocks could have another blistering year.

Here are two mid-cap dividend stocks I’m considering snapping up today.

Ultra Electronics

I think defence companies like Ultra Electronics (LSE: ULE) could have an exceptional 2022 as geopolitical tensions boil over. It’s not only a possible Russian invasion of Ukraine that’s putting the West on edge. A jump in the number of Chinese airplanes flying over Taiwan is a reminder of Beijing’s expansionist foreign policy in Asia too.

In this environment I expect orders of Ultra Electronics’ systems, which include sonar and radar systems on boats and providing mission-critical intelligence, to remain rock-solid.

I also like Ultra Electronics because of its expertise in electronic warfare. It’s my belief that revenues from its cyber security systems could balloon as countries duke it out on virtual battlefields. Researchers at Fortune Business Insights think the electronic warfare market will be worth $33.5bn by 2028, a $10bn rise from last year’s levels.

City analysts expect earnings at Ultra Electronics to rise for a fourth consecutive year in 2022. And they predict dividends to leap 7% too. This leaves the FTSE 250 stock with a healthy 2% dividend yield. I’d buy this UK dividend stock despite the ever-present danger of a systems failure that could prove catastrophic for future sales.

Glanbia

I’m tipping Glanbia (LSE: GLB) to have a strong year too as demand for its high-protein products soars. Its supplement brands such as Optimum Nutrition and SlimFast are becoming increasingly popular as people seek to live healthier lifestyles. Glanbia also makes ingredients that allow food manufacturers to improve the nutritional content of their goods.

The protein supplements market is particularly huge as people take up sports and visit the gym in increasing numbers. Experts at Allied Market Research think the industry will be worth $8.7bn by 2025, up significantly from $4.9bn in 2017.

This explains in part why City analysts think Glanbia’s earnings will rise in 2022 and that dividends will follow suit. A 5% yearly dividend increase is being tipped, a prediction that creates a decent 2.7% yield. I think Glanbia’s a hot stock to buy even though it faces huge competition in the supplements industry.

Demand for the penny stock’s dairy products could fall sharply as diets which contain no, or lesser amounts, of animal-derived products grows. But I think sales of its nutritional supplements and ingredients might explode as participation in sports and fitness activities takes off. And this provides plenty for UK share investors like me to get excited about.

Glanbia is the largest producer of whey isolate in the US. It also makes products under the Optimum Nutrition label, the world’s most popular performance nutrition brand. The sports nutrition market is tipped for monster growth (Grand View Research, for example, thinks the market will be worth $34.5bn in 2028, versus $16.7bn today). And it’s focused on global expansion to make the most of this opportunity.

Taking steps for growth

I also like the steps it’s taken to embrace the e-commerce growth boom. A whopping 70%-plus of revenues at its Glanbia Performance Nutrition were generated online last year, up from below a third just five years earlier.

Today, Glanbia changes hands on a price-to-earnings (P/E) ratio of 22 times. This isn’t exactly low and could prompt a sharp share price reversal if profits don’t grow as expected. Still, I think its extensive exposure to one of the fastest-growing consumer industries makes it worthy of a premium rating.

A penny stock for the gaming boom

Grabbing a slice of the mobile gaming market is another good idea, in my opinion. This is where Gaming Realms (LSE: GMR) comes in, a tech business which creates and licences casino games for use on mobile phones and tablet PCs. Its most famous product is the line of highly-popular Slingo games.

Gaming Realms is making big strides in North America and this week it announced its provisional iGaming Supplier Licence in Michigan had been upgraded to a full licence. This matches the licences it already has to operate in Pennsylvania and New Jersey. The business also has submitted an application to operate in Ontario.

Revenues are soaring!

In other encouraging news Gaming Realms said that content licensed revenues had leapt 35% year-on-year in the third quarter. It added too, that its new licensing and games pipeline “has also grown”.

The business has terrific opportunities for growth across its North American European markets, and I’m impressed by the pace at which its expanded its list of partners over the past year alone (industry heavyweights like 888casino.com, DraftKings and Paddy Power Betfair, for example, all launched Slingo Originals titles in 2020).

Of course gaming is a highly-regulated industry and any legislative changes could have a significant impact on Gaming Realms’ profits. However, as things stand today I think there’s a lot to be encouraged by here. Like Glanbia, I’d happily buy it for my shares portfolio today.

Glanbia share price activity

The Glanbia share price has risen 34% year-to-date and is now trading at €14 a share. But it’s down 25% from early 2019. It fell back then after global trade wars impacted earnings. And the share price drop was exacerbated further by Covid-19.

The company has been growing through acquisitions, which continue to improve its future potential. And it’s particularly seeing strong growth across e-commerce. This gives it confidence that its adjusted earnings per share growth will be at the upper end of the growth range it predicted.

But it’s not all rosy. Glanbia has seen a drop in revenues from cheese and it’s also facing a legal dispute over the construction of a new cheese factory in Ireland to which it will supply milk. The National Trust for Ireland (An Taisce) is against the new build for environmental reasons. As the country is trying to reduce emissions to meet the Paris Agreement, they argue a new factory won’t help.

Last month the High Court supported the Glanbia factory build, but An Taisce is appealing this decision.

Would I buy shares in Glanbia?

Glanbia’s price-to-earnings ratio (P/E) is 17, earnings per share (EPS) are 79c while the dividend yield is 1.7%. Between 2015 and 2019, the Glanbia share price consistently sat above where it is today. I think this shows strength and resilience.

I’m tempted to buy shares in Glanbia because it’s providing many of the consumer goods people want today. Nutrition has never been more on the minds of consumers and I think this trend will continue.

Further focus on health and nutrition

The other stock I like is Tate & Lyle (LSE:TATE). It supplies food and beverage ingredients to industrial markets.

As I noted above, there’s a clear trend that consumers want to be healthier, and Tate & Lyle’s got the expertise to make processed foods healthier. Last month Tate announced it’s looking into selling a controlling stake in its commercial sweeteners unit. This would allow it to focus more closely on healthier products through its food and beverage solutions unit. This division makes texturants, stabilisers and low-calorie sweeteners.

I think this seems like a sensible focus for the group and it could benefit shareholders long term. In the past three years, the Tate & Lyle share price has risen 33%. Historically it’s been a volatile investment, but the dividend helps long-term shareholders withstand the low points. It was relegated from the FTSE 100 to the FTSE 250 in 2014 for the 12th time in 23 years. It’s not yet made it back in, but streamlining the business seems like a good way to improve its prospects.

Tate & Lyle has a price-to-earnings ratio (P/E) of 13 and earnings per share (EPS) are 52p. Its dividend yield is around 3.6%.

Glanbia and Tate & Lyle are two stocks I’d buy to follow the health and wellness trend and the e-commerce rise. I own Tate & Lyle shares and would be happy to add more to my Stocks and Shares ISA.

I have my eye on a number of penny stocks I think could soar in value as the world recovers from the pandemic. Here are three of these low-cost reopening stocks I’m thinking of adding to my Stocks and Shares ISA.

#1: Looking good

The easing of Covid-19 lockdowns will lead to an avalanche of people seeking to get out and about. It’s a theme that will play into the hands of penny stock Lookers. It can look forward to sales of its new and used cars leaping as its showrooms reopen. And, of course, revenues from its servicing and repairs business should surge too as people start hitting the road again in large numbers. Be warned though, the company still has a considerable amount of debt on its books (estimated at £45m as of December). This could pose a big problem if a fresh coronavirus wave forces Lookers to shut its doors again.

#2: A penny stock preparing for lift off

Airline shares like Ryanair are perhaps not for the faint of heart. The emergence of Covid-19 variants and a slow vaccine rollout means that a third wave of infections is spreading across the low-cost carrier’s European heartlands. Indeed, the business increased its loss forecasts for this fiscal year on the back of the escalating crisis. Even when Ryanair’s planes take to the skies in huge numbers again, the impact of rising oil prices on its cost base will take a huge bite of profitability too.

But as a long-term UK share investor I’d still buy this penny stock for my portfolio today. The firm has a big cash pile (€3.2bn as of March) to help it ride out a prolonged mass-grounding of its fleet. And what’s more, the outlook for the budget travel market remains exceptionally bright for the next few years, at least. Even despite last year’s hiccup, the experts at Allied Market Research expect the low-cost airline segment to grow at a compound annual growth rate of 8.6% between 2017 and 2023.

#3: The sports star

Glanbia is another reopening stock I’m thinking of adding to my ISA today. Mass gym closures significantly damaged demand for this penny stock’s high-margin sports nutrition products in 2020. Therefore, it stands to reason that takings should rebound considerably in the near future as fitness facilities steadily reopen. The protein supplements market is expected to expand significantly over the next few years as demand from people who aren’t athletes or bodybuilders grows. But remember that competition among manufacturers of these expensive consumer products is intense. And promotional activity here tends to be high, casting an extra cloud over Glanbia’s top line.

Here are two cheap penny stocks I’m considering buying for the new bull market. UK shares like this all cost less than £1 each.

#1: A top penny stock for the retail recovery

2020 was a disaster for the broader fashion sector as Covid-19 took hold. Shop closures, allied with the rise of home working and restrictions on social gathering, caused total sales volumes of clothes in the UK to fall more than a quarter year-on-year. But I think fashion demand could be about to spike as lockdowns unwind and economic conditions improve.

Past form shows us that spending on discretionary items always picks up strongly during the early stages of economic upturns. Things could be particularly explosive during the upcoming bounce-back too given the huge savings chests people have built up during lockdowns. I think all this bodes well for Coats Group (LSE: COA), a penny stock that makes threads, zips and trims for clothing (alongside a broad range of other products).

This explains why City analysts think earnings here will soar 125% in 2021. It’s a projection that leaves this stock trading on a forward price-to-earnings growth (PEG) ratio of 0.1. Any value below 1 can suggest that a UK share is undervalued by the market. Be warned though, sustainability is becoming an increasingly pressing issue in the minds of consumers. It has the potential to hit demand for Coats’ products in future if people begin to scale back their wardrobes.

#2: A UK share with serious muscle

I also think Glanbia (LSE: GLB) could experience strong profits growth in the new bull market. Even UK shares that operate in the more stable food industry benefit from the uplift in broader consumer activity during economic recoveries. So I think this cheese manufacturer could see demand for its dairy products and ingredients growing.

Glanbia also has its fingers in the sports nutrition products segment. It therefore stands to gain from the mass reopening of gyms and leisure centres as the Covid-19 crisis steadily recedes. I think that this particular side of the penny stock’s operations provide exceptional long-term profits opportunities too. Analysts at Grand View research reckon the protein supplements market will grow at an annualised rate of 8.4% through to 2028.

City brokers think Glanbia’s profits will rise 7% in 2021, leaving the company trading on an undemanding forward price-to-earnings (P/E) ratio of 15 times. It’s possible that the rising popularity of vegan diets could hamper earnings growth at the dairy products manufacturer beyond the immediate term. But all things considered, I think this stock merits serious attention at current prices.

I for one remain compelled by the Nurofen and Durex manufacturer’s long-term earnings outlook, however, and consider current trading problems in some of its regions as nothing more than a few bumps in the road.

I plan to delve into Reckitt Benckiser’s brilliant investment potential in some detail. But before I do, I would like to look another London-quoted share making the headlines this week with fresh profits news of its own, namely food ingredients and nutrition specialist Glanbia (LSE: GLB).

Earnings grow again

On Wednesday, the company announced that 2017 revenues had jumped 7% to €2.39bn, a result that powered pre-tax profit 2% higher to €229.7m.

Meanwhile, Glanbia saw pro-forma adjusted earnings per share rise 10.2% at constant currencies, the eighth successive year of double digit earnings expansion. However, news that the business expects growth on a comparable basis to slow to between 5% and 8% in 2018 sent investors scurrying for the exits (the foodie firm was last 6% lower from Tuesday’s close).

 City analysts had expected Glanbia to record an earnings rise of 9% in 2018 and to follow this with an 8% advance in 2019. But even if these figures undergo some downward adjustment, I believe the company remains a compelling growth pick for the years ahead.

You see, the Irish giant is taking steps to become, as it says, “one of world’s top performing nutrition companies.” And in keeping with this goal, Glanbia added that its focus in 2018 “will be on volume-driven revenue growth across [its] wholly-owned growth platforms of Glanbia Performance Nutrition and Glanbia Nutritional.”

The ingredients giant has invested heavily in brand development and product launches in recent years, while it has also forked out a fortune in boosting its plant and IT systems at both divisions, as well as building a new innovation centre at GPN. It’s also been busy building a presence in the nutritionals segment through targeted M&A and last year it bought Amazing Grass of the US and the Netherlands’ Body & Fit for a combined €168.2m.

Ongoing investment doesn’t come cheap but these vast near-term costs should provide the basis for Glanbia to make a significant splash in this fast-growing market. I believe a forward P/E ratio of 16 times is a compelling level at which to latch onto this exciting growth play.

In great health

Now for Reckitt Benckiser. Also trading outside the widely-accepted value territory of 15 times or below, the FTSE 100 business is dealing on a forward P/E ratio of 16.9 times. Like Glanbia, it’s also expected to generate earnings growth of 9% this year and 8% in 2019.

But in my opinion, the brilliant earnings visibility created by its raft of market-leading labels warrants this slight premium, as does Reckitt Benckiser’s sprawling presence across both developing and emerging markets.

With the acquisition of Mead Johnson helping it on its way to become a major player in the consumer healthcare segment (this division finally returned to growth at the back end of last year), I reckon the Footsie firm has everything to make investors a fortune in the years ahead.

Glanbia (LSE: GLB) moved modestly higher on the back of its latest trading details, the stock last up 1% from the mid-week close. But share picker appetite would no doubt have been stronger in the absence of the broader risk aversion currently sweeping world markets.

The food group continued to see revenues soar during January-June, it announced, the top line swelling 11.5% to €2.05bn. On a constant currency basis this was up 9.9% year-on-year.

As a result it saw EBITA soar 9.2% to €192.8m. The company advised that the sale of its 60% stake in Dairy Ireland and the division’s related assets last month had been classified as discontinued operations in the firm’s half-time numbers.

Chief executive Siobhán Talbot said: “Glanbia Nutritionals and Joint Ventures were the main drivers of growth in the first half and we believe second half earnings progression will also be driven by Glanbia Performance Nutrition where good organic growth is expected for the remainder of the year.”

Sales at Glanbia Nutritionals leapt 9% at stable exchange rates in the first half, while revenues at Joint Ventures and Associates increased 23.2% from the corresponding 2016 period.

And growing global demand for sports nutrition products also underpinned the strong first-half sales performance — the top line at Glanbia Performance Nutrition grew 5.4% in the period at constant currencies.

Talbot added that the Irish business remains on course to report pro-forma adjusted earnings per share growth of 7%-10% on a constant currency basis.

On the right path

The City certainly believes Glanbia is on course to keep earnings on an upward tilt, the company supported by an improvement in dairy markets and robust demand across the business. As such, bottom line rises of 6% are chalked in for both 2017 and 2018 respectively, although today’s sunny update may prompt an upgrade of these forecasts.

While dealing on a forward P/E ratio of 18.9 times, I reckon the Kilkenny company is worthy of a slight premium.

Rest easy

InterContinental Hotels Group (LSE: IHG) is another stock expected to deliver chunky bottom-line growth in the near-term and beyond.

In 2017, the global hotelier is predicted to deliver an 18% earnings improvement, and to follow this up with a 6% advance next year. And given the prospect of further rises in the coming years, I reckon InterContinental is also a terrific pick regardless of its slightly-heady forward P/E reading of 22 times.

The Buckinghamshire business saw revenues at constant exchange rates continue to chug higher in the first half, up 4% year-on-year to $788m, it announced last week. This underpinned a 7% rise in underlying operating profit which clocked in at $365m.

While the business saw REVpar (or revenues per available room) rise 2.1% in the period, this slowed to 1.5% in the second quarter from 2.7% in the prior three months, thanks in no small part to the impact of a later Easter on its US hotels — REVpar here fell 0.4% during April-June.

However, I believe the broad strength of the economy Stateside should push revenues here higher again sooner rather than later. And with InterContinental also continuing to make progress in Europe and China, I think the business remains a great share for those seeking excellent long-term growth.