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Have £1000 to invest? I’d buy these 2 FTSE 100 dividend stocks today

The stock market crash has prompted a number of companies issuing full or partial dividend cuts. Most recently, these dividend cuts have been extended to both BT Group and Royal Dutch Shell. This has deprived income investors of two FTSE 100 dividend stocks with extremely high yields. As such, it is certainly worth exploring other shares that may be able to fill this gap.

A global leader amongst dividend stocks

The first high-yield income stock is the international tobacco and FTSE 100 company British American Tobacco (LSE: BATS). Founded in 1902, British American Tobacco now has operations in around 180 different countries. Its cigarettes are also chosen by around one in eight of the 1.1 billion smokers in the world.

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Nevertheless, it is British American Tobacco’s reputation as a dividend stock that piques my interest. With a yield of around 7%, the firm is in the largest 25% of dividend payers in the UK. Whilst this is a very attractive yield, it is also important to analyse whether British American Tobacco has the necessary funds to cover it. In this respect, with a dividend cover of 1.55, I rate this FTSE 100 tobacco company as a very reliable dividend stock.

On the other hand, this dividend stock does not come without risk. Firstly, the cigarette industry is declining. Although British American Tobacco has attempted to introduce a number of safer products, the declining number of smokers may still hinder growth in the company. This is especially relevant because smokers are reported to be at further risk to coronavirus. In addition, BATS has a significant amount of debt on the balance sheet and this may become unsustainable in the event of any future downturn.

A top FTSE 100 mining company

The second high-yield dividend stock is Anglo American (LSE: AAL). Anglo American is a global mining company, as well as being the world’s largest producer of platinum. It is also a major producer of diamonds, copper, nickel and iron ore. Whilst I cannot see significant demand for products like diamonds in the near future, the metals mined are still essential in products like smartphones, electric cars and wind turbines. This will help this dividend stock cope throughout the pandemic.

As with British American Tobacco, Anglo American has a very impressive yield of 5.5%. A dividend cover of 2.49 also cements this as fairly reliable. Furthermore, this dividend stock has a stronger balance sheet than that of BATS. This includes slightly more cash and far less debt than the tobacco company. For this reason, I believe that this FTSE 100 company is a good stock for any income investor.

In conclusion, I believe that both these dividend stocks offer reliable yields that help counteract the effects of the dividend cuts from other FTSE 100 companies. With a stronger balance sheet and larger dividend cover, I would rate Anglo American as the safer option — yet I can certainly see strong recoveries for both the two companies.

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Stuart Blair owns shares in Royal Dutch Shell. 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.