Passive income for financial freedom: my top FTSE 100 dividend shares to buy now

Passive income for financial freedom: my top FTSE 100 dividend shares to buy now

first_img 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. 5 Stocks For Trying To Build Wealth After 50 Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. When it comes to finding FTSE 100 dividend shares to buy now, I reckon there are some good choices on the London market.And one of the great things about dividend shares is they’re good for harvesting a passive income. I can also choose to reinvest the dividends to help build up the capital value of my portfolio with the aim of harvesting a larger passive income later – perhaps in retirement.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…Using FTSE 100 dividend shares to mimic great investorsOne investor made a big success of dividend investing. Her name was Geraldine Weiss, born in 1926. And she became known as the ‘Grande Dame of Dividends’ and sometimes the ‘Dividend Detective’ or the ‘Queen of Blue-Chip Dividends’.Her investment success arose because of a pioneering approach to using dividend yield as a valuation metric when most other investors of the time were focusing mainly on earnings. She saw there’s a strong relationship between the ability of a company to pay dividends and the way a stock performs in the market.I think a strategy that focuses just on dividends is elegant in its simplicity. And Weiss considered everything else within the frame of a company’s ability to keep paying dividends. Meanwhile, simple proved to be extremely effective for her. For example, one of her biggest investment returns came from Coca-Cola.Through her Investment Quarterly Trends newsletter, she tipped the stock between 1982 and 1992 and the share price rose by around 1,285% during that period. With dividends added, the annualised return from the investment worked out at just under 35%. But Weiss stopped tipping the stock when the dividend yield fell too low.Indeed, she didn’t believe in holding stocks forever. She typically bought stocks when the yield was within 10% of its highest-ever value. And she often sold them when the yield dropped to within 10% of its lowest value. However, although trading shares based on that valuation measure, she often held for years rather than weeks or months. And Coca-Cola is a good example of that.Dividend stocks I’m keen on nowWe can find out more about the criteria she used to make dividend investments from the books she wrote. And there’s also a fair bit of information available online. But, in the meantime, I’m building up my own ‘hit list’ of FTSE 100 dividend shares.For example, I like the look of energy company SSE and its 6% forward yield. The company is moving into renewable energy with its wind farm investments and I reckon the dividends could prove to be sustainable for many years ahead. And, in the pharmaceutical sector, I think GlaxoSmithKline looks attractive with its dividend yield just below 6%.I’d reinvest the dividends from investments like those to help compound my gains over time. And using the wisdom of Weiss, I’d aim to build an investment pot large enough to produce a passive income for financial freedom in retirement. Kevin Godbold | Sunday, 29th November, 2020 Click here to claim your free copy of this special investing report now! Passive income for financial freedom: my top FTSE 100 dividend shares to buy now Simply click below to discover how you can take advantage of this. Our 6 ‘Best Buys Now’ Shares Kevin Godbold has no position in any share mentioned. The Motley Fool UK has recommended GlaxoSmithKline. 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. I’d also take a close look at these five shares. Enter Your Email Address Image source: Getty Images. 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. See all posts by Kevin Godboldlast_img

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