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Have £2k to spend? 2 FTSE 100 dividend stocks for 2020 I’d buy to retire on

Looking for top dividend stocks to load into your ISA for 2020? GlaxoSmithKline (LSE: GSK) is one I’d happily buy on the strength of its product pipeline, one which promises to deliver supreme profits growth through the 2020s and probably beyond.

The Footsie drug giant has around 40 medicines in the development stage in big growth areas like oncology and HIV, a pipeline that is constantly delivering a steady stream of future revenues drivers. And I reckon the business could prove to be a wise pick for 2020 in particular as a backdrop of intense geopolitical and macroeconomic tetchiness boosts demand for safe-haven sectors like pharmaceuticals.

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A mix of this rush-to-safety buying and some strong trading releases, such as third-quarter numbers that showed product sales boomed 16% to £9.4bn, has helped Glaxo’s share price also rise 16% so far in the current year. A low forward P/E ratio of 14.4 times gives plenty of room for more strength in the New Year too.

One final thing: at current prices, Glaxo also boasts a bruising 4.6% dividend yield for 2020, created by City expectations of another 80p per share annual payout. But it’s not the only income hero that I’d buy for the year ahead as I reckon National Grid (LSE: GSK) should also attract no shortage of safe-haven buying.

Supercharge your income flows

With a cooling UK (and global) economy raising the likelihood of a rush of profit warnings next year, firms that supply essential services like water, sewage management, electricity and gas are worth their weight in gold. To illustrate this,  National Grid, which operates the country’s vast network of pylons and substations, has seen its share price jump 17% so far in 2019.

There is some regulatory uncertainty here as Labour threatens to nationalise key utilities, but the likely failure of the party to seize power after tomorrow’s general election means that this only major threat to National Grid’s long-term profitability will be taken off the table.

Illustrating the company’s quality as a solid earnings generator even in tough economic times, City forecasts suggest that the network operator will follow a predicted 33% bottom-line rise in the current fiscal year (to March 2020) with an additional 6% advance in the following period. And as you’d expect, this leads to expectations of further dividend growth too.

Last year’s 47.34p per share total dividend is anticipated to rise to 48.7p in the present period and then to 50.1p in financial 2021, estimates that yield a mighty 5.5% and 5.6% respectively. But this is not the only reason to celebrate National Grid at current prices as it also commands an undemanding forward P/E ratio of 15.1 times, one that fails to fully reflect its supreme defensive qualities and leaves much scope for share price gains in the new calendar year.

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Royston Wild has no position in any of the shares mentioned. The Motley Fool UK owns shares of and 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.