Shares to buy: Invest in 2 FTSE 100 dividend shares now.

Dividend stocks can play an important role in the investment portfolio. Not only can it provide two sources of return, capital gains and dividends, but it can also provide portfolio stability.

I’m going to emphasize the two tops here FTSE100 Dividend stock to buy now. Both of these stocks have excellent dividend performance. Dividends are not guaranteed, but I believe the stock can provide attractive returns for investors in the long run.

Warren Buffett likes this company

let’s start Unilever (London Stock Exchange: ULVR)A major consumer goods company that owns a wide range of well-known and reliable brands such as. pigeon, Domestos, Hermanns And Ben & Jerry’sThe stock currently offers an expected yield of approximately 3.4%.

Unilever considers it one of the best dividend stocks in the UK that investors can own. One of the reasons is that the company’s revenue, profits and cash flow are very stable. Consumers regularly and repeatedly purchase the Unilever brand, regardless of economic conditions. This leads to a reliable dividend.

Second, with more than 50% of revenue coming from emerging markets, Unilever is exposed to wealth growth in developing countries, one of the strongest trends on the planet. Exposure to this trend will drive growth in the long run (and help businesses pay higher dividends).

Of course, like any other stock, there are risks in the investment case. Consumer preferences and preferences are changing rapidly these days (Vegetable food Is a good example). Unilever must innovate to maintain relevance. The stock price is also higher than the average FTSE 100 company.

But overall, I think Unilever now looks very attractive.The stock price is 10% higher than at that time Warren Buffett I tried to buy the company a few years ago, but I think the stock price is skyrocketing today.

Very reliable dividend stock

Another dividend stock I want to buy now Smith and Neffie (London Stock Exchange: SN)A leading medical device company specializing in artificial joint replacement. The company has been paying dividends annually since 1937 and is a very reliable dividend company. It currently offers an expected yield of around 1.7%.

There are several reasons why I like the look of Smith & Nephew stocks at this time. One is that it is a reopening play. As the world resumes and selective medical treatment resumes, demand for the company’s products should increase significantly. Last month, the company said it was targeting 10-13% revenue growth this year, which is very healthy.

Another reason I like SN is that it is well suited to profit from a number of strong long-term trends. Not only will it benefit from increased wealth in emerging markets (emerging market revenues increased 22% in the first quarter), but it is also a good place to benefit from the aging of the world.

In terms of risk, Smith & Nephew faces competition from other medical device players, including: strikerIts valuation is also higher than the valuation of the average FTSE 100 stock.

But I’m happy with these risks. I think there is great potential for this dividend stock.

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And the performance of this company is really great.

2019, It returned £ 150a million To our shareholders With share buybacks and dividends.

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  • Annual revenue after 2016 31% increase
  • In March 2020, one of the senior directors Load up About 25,000 shares – £ 90,259 worth of position
  • Operating cash flow increased 47%. (Operating profit margin is also rising year by year!)

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Edward Sheldon owns shares in Unilever and Smith & Nephew. Motley Fool UK recommends Smith & Nephew and Unilever. The views expressed about the companies mentioned in this article are those of the author and may therefore differ from the official recommendations made by subscription services such as Share Advisor, Hidden Winners, and Pro. At The Motley Fool, given a wide range of insights, Better investors than us.

Shares to buy: Invest in 2 FTSE 100 dividend shares now.

Source link Shares to buy: Invest in 2 FTSE 100 dividend shares now.

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