July 5

Forget a Cash ISA! I’d buy dirt-cheap FTSE 100 dividend stocks today

first_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Simply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Roland Head | Saturday, 25th July, 2020 | More on: BATS PHNX VOD Enter Your Email Address See all posts by Roland Head Cash ISAs have become pretty hopeless for anyone needing an income from their savings and investments. The best one-year rate I can find at the time of writing is just 1.2%. For a long-term income, I think it makes more sense to buy FTSE 100 dividend stocks.For this piece, I’ve selected three stocks with an average forecast yield of 7.1%. All three payouts should be backed by cash flow — I think they look safe for the foreseeable future.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…A sinful 8% payoutHealth-conscious investors should look away now. Dividends at British American Tobacco (LSE: BATS) depend on cigarette brands such as Dunhill, Rothmans and Lucky Strike.Sales have suffered slightly due to lockdown restrictions in some markets, but the company still expects revenue growth of between 1% and 3% this year.Not all investors are comfortable with tobacco stocks. But the financial reality is that BATS enjoys stable profits, high profit margins and strong cash generation. Net debt is gradually falling after a series of acquisitions and chief executive Jack Bowles seems confident that dividend growth can be maintained.Although I’d like to see BATS’ debt a little lower, I agree with Mr Bowles. Last year’s 203p per share payout was comfortably covered by free cash flow.Analysts expect the dividend to rise by 7% to 217p per share this year, giving a forecast yield of 8.1%. I think this FTSE 100 dividend stock remains a top pick for income.This dividend stalwart looks like a buy to meMy next pick is telecoms giant Vodafone Group (LSE: VOD). Best known as a mobile operator in the UK, it’s also one of the biggest broadband network operators in mainland Europe and a top mobile operator in Africa.The group’s operations are being fine-tuned and focused by chief executive Nick Read, who was previously Vodafone’s finance boss. He knows exactly how all the nuts and bolts go together. I believe he’s doing a good job restoring the firm’s reputation as a top FTSE 100 dividend stock.Although the UK government’s decision to ban Huawei kit from UK networks is a blow, Vodafone has until 2027 to remove all of the Chinese firm’s kit from its 5G network. Equipment used on older networks will be allowed to stay in place.I suspect the cost of these changes will be absorbed without too much difficulty. I certainly don’t think it will pose a threat to Vodafone’s 6.3% dividend yield, which was comfortably covered by surplus cash last year.Don’t overlook this FTSE 100 dividend stockYou might not have heard of FTSE 100 life insurer Phoenix Group (LON: PHNX). This is because the firm’s activities are mostly concerned with managing closed books of older policies, which it buys from other insurance companies.Phoenix is a specialised and efficient business that generates a lot of surplus cash. Although dividend growth has only averaged about 2% in recent years, that’s enough to match inflation. And with the shares offering a yield of 7%, shareholders receive a decent cash return on their investment each year.The only downside of this business is that it’s difficult to understand. We really don’t have much choice but to trust the firm’s calculations about future profits and cash flow. However, I’ve been following this stock for some time and believe Phoenix has a good track record of delivering on its promises.center_img Forget a Cash ISA! I’d buy dirt-cheap FTSE 100 dividend stocks today Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Our 6 ‘Best Buys Now’ Shares Image source: Getty Images. Roland Head owns shares of British American Tobacco. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. “This Stock Could Be Like Buying Amazon in 1997”last_img

Tags: , , , , , , , , , , ,
Copyright 2021. All rights reserved.

Posted July 5, 2021 by admin in category "olaxyxdvbgli

Leave a Reply

Your email address will not be published. Required fields are marked *