Forget Bitcoin. Now could be the right time to buy cheap FTSE 100 dividend stocks in an ISA

first_imgForget Bitcoin. Now could be the right time to buy cheap FTSE 100 dividend stocks in an ISA 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. Peter Stephens | Thursday, 2nd July, 2020 Simply click below to discover how you can take advantage of this. 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. “This Stock Could Be Like Buying Amazon in 1997” 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. Peter Stephens has no position in any of the shares mentioned. 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.center_img Our 6 ‘Best Buys Now’ Shares Enter Your Email Address Image source: Getty Images. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Buying FTSE 100 dividend shares may seem to be a risky move at present. After all, many companies may decide to reduce their dividends in light of difficult operating conditions.However, low interest rates may mean demand for dividend shares increases significantly over the medium term. Improved dividend growth may also take place among many large-cap shares as their operating environments improve.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…As such, purchasing a selection of dividend shares now could be a better means of generating high returns than buying other assets, such as Bitcoin.FTSE 100 dividend share demandDemand among income-seeking investors for FTSE 100 dividend shares could increase over the coming years. The Bank of England recently said it would be likely to unwind its quantitative easing programme before considering interest rate rises. This could prolong a period of historic low interest rates. And, with the future prospects for the economy remaining uncertain, negative interest rates aren’t currently being ruled out by policymakers.The end result may be that there’s less choice for income investors. Cash ISAs and bonds may, for example, fail to offer positive returns after inflation is factored in. This may cause demand for dividend shares to rise, since they could offer significantly greater income returns than other assets. Especially because their yields are now higher in many cases following the index’s market crash.Rising demand for FTSE 100 dividend shares could mean their prices rise. Since there are now fewer companies in the index paying dividends, due to uncertain operating conditions, they could become increasingly attractive for investors who are seeking to generate high total returns in the coming years.Dividend growth potentialAlthough FTSE 100 dividends have been cut in many cases in recent months, they’re likely to return over the coming years. The world economy’s track record of recovery from recessions is very strong. Meanwhile, policy action has generally been swift in response to lockdown measures put in place due to coronavirus.Therefore, dividend growth could prove to be much stronger over the coming years than stock valuations currently suggest. As such, investors may be able to access attractive yields today, and obtain an inflation-beating growth rate in their income over the long term.Since a large proportion of the index’s past total returns have been derived from the reinvestment of dividends, this could lead to a surprisingly large portfolio valuation.Bitcoin appeal?With FTSE 100 dividend shares continuing to be relatively unpopular, and Bitcoin having doubled since its March low, some investors may consider purchasing the virtual currency instead of income stocks. However, Bitcoin’s lack of fundamentals, regulatory risks, and a lack of a long-term track record mean that purchasing dividend shares in an ISA while they’re relatively cheap could entail a more favourable risk/reward ratio for long-term investors. See all posts by Peter Stephenslast_img

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