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Like dividends? I think you’ll love these FTSE 100 dividend stocks

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From a dividend point of view, UK investors are quite lucky as there are hundreds of domestic stocks that deliver attractive payments. It’s really not that hard to put together a portfolio that yields 4%-5%, or even higher.

That said, it pays to be selective when investing for dividends as you don’t want to be hit with a cut. With that in mind, here’s a look at three FTSE 100 dividend stocks I like right now.

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Mondi (LSE: MNDI) is an international packaging and paper group that operates in more than 30 countries across the world. The company is fully integrated across the packaging and paper value chain and has a strong focus on sustainable packaging solutions, which is important in today’s environmentally-aware world.

Mondi shares have considerable dividend appeal, to my mind. Not only is the yield attractive at 3.7%, but cover is strong at around 2.3 times, which indicates there’s little chance of a dividend cut in the near term.

Additionally, the company has lifted its dividend payout significantly over the last five years and looks set to continue hiking the payout in the years ahead, with analysts forecasting growth of 5% this year and 4% next year.

Packaging companies like Mondi are a little out of favour with the market right now due to global growth concerns, and I think that’s created an opportunity for dividend investors. Trading on a P/E of just 10.7, Mondi shares are priced to buy, in my view.

BAE Systems

Next up, BAE Systems (LSE: BA), a multinational defence and security company that helps to protect national security and keep critical information and infrastructure secure. With geopolitical uncertainty across the world remaining elevated, the company appears well placed to benefit.

BAE Systems shares have pulled back significantly over the last year over the uncertainty surrounding its relationship with Saudi Arabia, and this has pushed the yield up to an attractive 4.6%. I think that level of yield is hard to ignore as dividend coverage is strong at nearly two times.

The company also has a fantastic dividend growth track record, having notched up 15 consecutive dividend increases now. With the stock trading on a P/E of 10.6, I think it’s a good time to be accumulating BAE for its yield.

Legal & General Group

Finally, I continue to see considerable income appeal in Legal & General (LSE: LGEN) shares. The dividend yield here is a high 5.9% – nearly four times what you could pick up from a high-interest savings account.

With high yielding stocks, you need to be a little careful as this can signal the market believes a dividend cut is on the horizon. Yet with LGEN shares, I don’t think investors need to be worried. For starters, dividend coverage is healthy (forecast to be 1.9 times this year) and secondly, the group just lifted its payout by 7%, which suggests management isn’t concerned about dividend affordability.

City analysts expect LGEN’s dividend to continue rising in the years ahead, with payouts of 17.6p per share and 18.9p per share pencilled in for FY2019 and FY2020, respectively, meaning the stock could be an absolute cash cow for investors. With the shares trading on a P/E of just 8.6, I think LGEN shares are a fantastic income buy right now.

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Edward Sheldon owns shares in Mondi, BAE Systems, and Legal & General Group. 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.

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