The Motley Fool

Two super FTSE 100 dividend stocks I’d buy for 2019

Image source: Getty Images

The FTSE 100 took a hammering in the fourth quarter of 2018, and while it has recovered a little in the last week or so, there’s still a lot of value on offer right now, in my view. Here’s a look at two top FTSE 100 dividend stocks I’d buy for 2019 and beyond.

Sleep well at night 

With economic uncertainty remaining elevated as we begin 2019, I think it’s a good idea to have a few ‘sleep-well-at-night’ stocks in a portfolio. One classic example of this is Reckitt Benckiser (LSE: RB). The consumer goods company owns a powerful portfolio of health and hygiene brands such as Nurofen, Durex, and Harpic. With these kinds of brands offering enduring appeal, it’s unlikely that sales or profits will suddenly fall off a cliff if the global economy takes a downturn.

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...

Reckitt shares rarely trade cheaply, as the company has an excellent long-term track record (its dividend has been increased nearly 600% over the last 20 years) and investors are fully aware of this. However, right now, the stock is down nearly 25% from its 2017 high (investors have concerns over the group’s recent acquisition of Mead Johnson) and its forward P/E has fallen to a more reasonable 17.1. As such, I think it could be worth a closer look. The shares currently offer a prospective yield of 3% and dividend coverage is expected to be around two times.

Long-term growth theme 

One long-term theme I’m quite bullish on is the growth of online shopping, and a simple way to play this theme, in my view, is through packaging companies. When you consider that almost every large online purchase comes in some kind of cardboard box, and that online shopping is becoming more and more popular, it becomes apparent that the world’s packaging companies have strong tailwinds driving growth.

A FTSE 100 company that I like in this sector is Mondi (LSE: MNDI). Spun off from parent company Anglo American in 2007, the group has grown significantly in recent years and now has a market capitalisation of over £8.5bn, but I believe there could be plenty more growth to come over the medium to long term, given online shopping trends. Just recently, the group advised it remains confident that it can continue to deliver an ‘industry-leading performance’ and ‘value accretive growth.’

Mondi shares dipped late last year as investors panicked about slowing global growth and the possibility of a recession. But I think this recent share price weakness has provided an attractive entry point, as I believe the fears of a significant slowdown are overblown. On a forward-looking P/E of 10.4, the shares now offer strong value, in my opinion. With analysts expecting a dividend payout of €0.77 for FY2019, the prospective yield is currently a healthy 3.9%, and dividend coverage is expected to be high at around 2.5 times.

“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!

Edward Sheldon owns shares in Reckitt Benckiser and Mondi. 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.