Would I buy 3 of the biggest dividend payers in the FTSE 100?

first_imgWould I buy 3 of the biggest dividend payers in the FTSE 100? With its ‘sin stock’ status aside, this high-yielding FTSE 100 dividend share has its forecast dividend payment covered by its cash flow, which means I’m less inclined to think it will be at risk of a cut.The tobacco industry has been shaken up in recent years. Big names sidestepped into vaping products to offset losses from declining cigarette volumes and Imperial Brands has its own next-generation products (NGP).But regulatory tightening remains a concern, although having established itself in the arena, it’s well placed to scale up when regulations are clearer.A large part of IMB’s portfolio contains cigarette, rolling paper and tobacco brands. Along with its NGP portfolio, it’s positioned to deliver sustained profitable growth. Considering its high dividend yield, I think this could be a bargain Buy.Mounting costsThe BT Group (LSE:BT-A) share price has taken a hammering in recent years. I looked at it last month and considered it a Buy due to BT’s cybersecurity knowledge. I still think this could be its secret weapon, but have lost confidence in its ability to rein-in costs. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! The UK government recently allowed Huawei to supply parts of the UK’s new 5G networks. The process also banned high-risk kit in use, which BT estimates will cost £500m to replace with approved components.BT Group has a P/E of 7 and a dividend yield of 8.6%, but many analysts think this yield is unsustainable. Given the group’s significant debt and pension deficit, along with the unknown costs it’s likely to incur in the 5G rollout, I agree a rate cut is likely on the cards. I won’t be buying. So, is Evraz worth the risk? It’s had a bumpy ride over the past year and its share price is down 42% in the past six months. One reason being that its chairman and major shareholders sold millions of shares without explanation. In its fourth-quarter trading update, it told us that consolidated crude steel production climbed 6.1% year-on-year, but external iron ore product sales fell 42.5% during 2019. It simply looks too risky for me, but I can see the appeal for those that don’t mind a roll of the dice.Unholy bargainConsumer defensive tobacco giant Imperial Brands (LSE:IMB) has a forward dividend yield of 14.9%The Imperial brands share price is down 20% in the past year and being a tobacco stock, it’s not one for ethical investors. It has an £18bn market cap, P/E of 18 and EPS of £1.05. Our 6 ‘Best Buys Now’ Shares Kirsteen Mackay | Sunday, 2nd February, 2020 | More on: BT-A EVR IMB Image source: Getty Images. For income investors, the dividend yield is often the deciding factor when choosing a stock, but it can be a deceptive beast.Very high dividend yields can be a warning beacon that the company is attempting to deflect attention from its problems. Whereas a very low dividend yield can cause potential investors to miss out on great opportunities if they write them off as a no-go.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…The following companies offer some of the highest yields in the FTSE 100, but the question is, are they a good investment?Risk vs rewardGlobal steel and mining company Evraz (LSE:EVR) has a dividend yield of 14.3% and its financial metrics are enticing. It has a £5bn market cap, a price-to-earnings ratio (P/E) of 3, earnings per share of £1.10 and that monster dividend.However, mining companies are notoriously risky investments. They’re also out of favour for the damage they’re doing to the planet.  Simply click below to discover how you can take advantage of this. “This Stock Could Be Like Buying Amazon in 1997” See all posts by Kirsteen Mackay Kirsteen has no position in any of the shares mentioned. The Motley Fool UK has recommended Imperial Brands. 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. Enter Your Email Address 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. 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.last_img read more

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