The Motley Fool

Create a second income stream with these 3 dirt-cheap FTSE 100 dividend stocks

Image source: Getty Images.

Share investors searching across the FTSE 100 for dividend shares don’t need to look far to find brilliant income stocks.

Indeed, the cluster of big yielders I describe below are just some that Britain’s elite stock index currently offers. And they’re not a flash in the pan. Rather, I think they have what it takes to provide savers with a second income stream over an extended period.

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...

And what’s more, these firms can also be picked up for next-to-nothing, each one carrying a forward P/E ratio inside the widely-regarded value territory of 15 times and below.

A proven dividend winner

Profits growth at Taylor Wimpey is about to decelerate sharply in 2018 and could well remain subdued looking ahead.

But the business remains a relatively ‘secure’ earnings pick in my opinion, even despite current dips in homebuyer confidence as there are insufficient home numbers in the UK. And this problem looks set to last as the population grows and government still fails to address the frankly pathetic build rate that has caused this shortfall over the past few decades.

This decent earnings visibility should give the market belief that Taylor Wimpey can keep growing dividends, supported by the builder’s exceptional cash generation. The City certainly thinks so, and it is predicting a 15.4p per share reward in 2018, a figure that yields a mighty 8.9%.

Soaring ahead

Budget flyer easyJet is another share I’ve long tipped to deliver delicious dividends now and in the years ahead.

The double whammy of surging demand for cheap airline tickets from European travellers, coupled with the Footsie firm’s busy route-and-hub-expansion programme, should keep driving profits broadly higher in the years ahead. And this bodes well for future dividends.

What’s more, easyJet is  doubling down on cost savings to help profits (and cash flows) grow still further, and it also stands to benefit from the cost synergies associated with its buyout of Air Berlin’s Tegel airport operations in Germany.

A 54.7p per share payout is anticipated for the year to September 2018 and a 69.3p reward for fiscal 2019, figures that result in chubby yields of 4.1% and 5.2% respectively.

Parcel force

Unless you’ve been living in a cave for the past decade or so you will know about the growing might of the online shopping space.

Those retailers who haven’t been investing in their internet operations have been left by the wayside, with more and more companies spending lavish sums to develop country-specific websites and to develop apps for shoppers who use smartphones. And this means that the number of packages sent through the post is only heading one way, and that is up.

The e-commerce phenomenon still has plenty of distance left to run as retailers ramp up investment, and this bodes well for parcels delivery firm Royal Mail across the whole of Europe. The business is expected to pay a dividend of 24.9p per share in the year to March 2019, resulting in a monster 5.2% yield, and I believe dividends should continue trekking northwards for quite some time.

“This Stock Could Be Like Buying Amazon in 1997”

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.

Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!

Royston Wild owns shares in Taylor Wimpey. 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.

Where to invest £1,000 right now

Renowned stock-picker Mark Rogers and his select team of expert analysts at The Motley Fool UK have just revealed 6 "Best Buy" shares that they believe UK investors should consider buying NOW.

So if you’re looking for more top stock ideas to try and best position your portfolio in this market, then I have some good news for your today -- 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.

Simply enter your email address below to discover how you can take advantage of this.