When looking for stocks to buy, you should always take into account the current geopolitical situation and macroeconomic factors that may affect results. Interest rates, oil prices and political uncertainty directly impact share prices and dividend safety.

Here’s what will impact stocks this month. Oil prices have fallen sharply from levels of over $90 recorded in June, reflecting easing geopolitical tensions or demand concerns.

This is less favorable for energy names. However, lower energy costs reduce input costs for manufacturers, retailers and transportation companies. Discretionary spending may improve as consumers face lower fuel bills.

So which sectors benefit the most?

Defensive dividend stocks stand out

In the current situation, stocks with a defensive dividend seem most attractive to me. British-American tobacco, National NetworkAND Legal and general they all look attractive. They are less sensitive to oil prices and more dependent on interest rates and domestic demand.

But while they all look good, the one I’m most interested in this month is this one NatWest (LSE: NWG). Why? Because the bank’s recent results were impressive, and the dividend prospects are getting better.

Could these be bank stocks that were missing from my portfolio?

The growing attractiveness of NatWest

NatWest is quickly becoming one of the most attractive bank stocks I don’t own yet. However, if it maintains this performance, that could change soon.

It is trading at a lower valuation than Lloyds and has seen stronger earnings growth recently, which has helped boost its dividend. Moreover, it is much less exposed to a car misselling scandal than Lloyds.

Here is a quick summary of the key elements of the 2025 results:

• Pre-tax profit rose 24% year-on-year to £7.71 billion.
• Revenue rose 13% to £16.64 billion.
• Return on real equity (RoTE) increased to 19.2% from 17.5%.

These kinds of numbers excite income investors.

Admittedly, it does not have the same defensive properties as others. Bank shares are particularly exposed to the impact of the UK economy, and with current political uncertainty this is a key risk.

However, forecasts remain bullish and predict that NatWest’s profits will grow by an average annual rate of 4.7% by the end of 2028. Meanwhile, the current dividend yield of 4.8% is forecast to reach 6.9% by 2028.

That’s a significant jump in income without taking on excessive risk. But is the dividend unthreatening enough to justify buying now?

So will these be the best stocks to buy in July?

My verdict

It’s impossible to say what stock is “best” in any given situation. However, I think that if the political situation in the country calms down, NatWest may become one of the leading British banks in July. If so, I may consider reallocating some of my funds from the financial sector to shares.

Given its high yield and impressive performance, I think it’s one of the best stocks to consider this month. The combination of growing dividends, solid profitability, and a reasonable valuation makes it difficult to ignore.

But before I invest any capital, I’ll be keeping a close eye on the next quarterly update.

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Mark Hartley owns shares in Lloyds, British American Tobacco, National Grid and Legal & General.