The Motley Fool

Forget gold! I’d buy these 2 FTSE 100 dividend stocks to get rich and retire early

The price of gold may have moved higher in recent months, but I feel that buying undervalued FTSE 100 dividend shares could be a better means of improving your long-term financial prospects.

In many cases, they offer wide margins of safety, plus growth potential and a promising income outlook that could lead to higher returns than the precious metal.

Sign up for FREE issues of The Motley Fool Collective. Do you want straightforward views on what’s happening with the stock market, direct to your inbox? Help yourself with our FREE email newsletter designed to help you protect and grow your portfolio. Click here to get started now — it’s FREE!

With that in mind, here are two FTSE 100 dividend shares I think could be worth buying today.


The most recent trading update from ITV (LSE: ITV) highlighted the progress it is making in delivering on its strategy, as well as the challenging operating conditions it is experiencing.

It has successfully launched its streaming service, BritBox, in the UK and has signed partnership deals with EE and Channel 4 that could broaden its content distribution. It has also made further progress on cost savings, while its Studios division is expected to enjoy a strong finish to the financial year.

Despite this, ITV is forecast to post a 1% fall in its bottom line in the current year. This is not a huge surprise, since an uncertain macroeconomic environment is likely to weigh on its prospects over the near term.

Looking ahead to next year, the company is forecast to produce a significant improvement in its financial performance. Its bottom line is expected to rise by over 6%, which could help to boost investor sentiment towards the stock. It may also help to reinvigorate its dividend payments, and could make it a more attractive income share while it offers a dividend yield of around 6%.

Therefore, ITV may not make rapid gains in 2020, but it seems to have the potential to deliver impressive total returns in the long run.

Standard Chartered

Also offering an improving dividend outlook is Standard Chartered (LSE: STAN). The bank’s most recent trading update showed that the changes made within its operations over the past few years seem to be improving its financial performance.

This is forecast to produce a 16% rise in its bottom line in the current year, with an 18% rise in earnings expected in 2021. This could help it afford to pay a higher dividend to its investors, with its current dividend yield of 3.9% expected to be covered 2.7 times by net profit in the current year.

As well as its improving income prospects, Standard Chartered could deliver a rising share price. Despite its improving financial performance, the stock trades on a price-to-earnings growth (PEG) ratio of just 0.7.

Therefore, while there may be economic challenges ahead in some of its key markets, the bank’s valuation indicates that it offers a wide margin of safety. This could mean that now is the right time to buy a slice of it and hold it over the long run.

A top income share with a juicy 5% forecast dividend yield

Income-seeking investors like you won’t want to miss out on this timely opportunity…

Here’s your chance to discover exactly what has got our Motley Fool UK analyst all fired up about this out-of-favour business that’s throwing off gobs of cash!

But here’s the really exciting part…

Our analyst is predicting there’s potential for this company’s market value to soar by at least 50% over the next few years...

He even anticipates that the dividend could grow nicely too — as this much-loved household brand continues to rapidly expand its online business — and reinvent itself for the digital age.

With shares still changing hands at what he believes is an undemanding valuation, now could be the ideal time for patient, income-seeking investors to start building a long-term holding.

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

Peter Stephens owns shares of Standard Chartered. The Motley Fool UK has recommended ITV and Standard Chartered. 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.