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3 FTSE 100 dividend stocks to buy now

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I’d buy these FTSE 100 dividend stocks because of recent positive business developments.

Fast-moving consumer goods

Fast-moving consumer goods supplier Reckitt‘s (LSE: RKT) share price plunged in July when it released its half-year results report. However, the company reckons it’s “on track to deliver sustainable growth” in the years ahead. But the move lower continued a negative trend that began in the middle of 2020. I reckon that suggests investors have been sceptical about the company’s ability to grow its earnings in the years ahead. 

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In June, the company announced a deal to sell its troublesome infant formula and child nutrition business in China for around $1.3bn. But following the completion of the transaction, Reckitt will still own and operate its Mead Johnson and Enfa brands in the rest of the world. Reckitt also disposed of Scholl recently and acquired the Biofreeze brand.

Chief executive Laxman Narasimhan reckons the firm is on track to achieve revenue growth in “mid-single digits” from 2022 onwards driven by its innovation programme. And I think the company’s established brands such as Calgon, Dettol, Finish, Gaviscon, Vanish and others make the shareholder dividend attractive. I’m also encouraged by the way Reckitt is nipping and tucking its portfolio to aim for stronger growth ahead.

With the stock near 5,725p, the forward-looking yield for 2022 is just over 3%.  

Growth from pursuing a net-zero strategy

July’s update from energy company SSE (LSE: SSE) set out progress in developing growth opportunities arising from a carbon net-zero strategy.

The company’s operations include the transmission, distribution and supply of electricity. And it’s making advances with major projects in those areas. Good examples are “the world’s largest” offshore wind farm at Dogger Bank, “Scotland’s largest” offshore wind farm at Seagreen, and “one of Europe’s most productive” onshore wind farms at Viking on Shetland. 

Like Reckitt, SSE is pursuing a programme to dispose of non-core assets. And it’s also working to add to its “considerable” pipeline of opportunities in the field of renewables. But the company has a troubled recent past characterised by volatile earnings. Looking ahead, the high debt-load could prove to be a source of risk for shareholders

With the share price near 1,650p, the forward-looking dividend yield for the trading year to March 2023 is just above 5%. I think that’s attractive. 

A persistently high-yielding FTSE 100 dividend stock

Smoking products maker British American Tobacco (LSE: BATS) has been out of favour with investors. And the situation led to a low-looking valuation. But the company also carries a lot of debt and operates in an industry facing regulatory scrutiny and ethical concerns, all of which adds risks for shareholders.

With the share price near 2,738p, the forward-looking dividend yield for 2022 is just above 8%. Normally I’d see a yield that high as a red flag. But BATS has a strong multi-year record of rising revenue, earnings and shareholder dividends. And it’s backed up by strong and consistent cash flow.

In July’s half-year results report, chief executive Jack Bowles said there’s “great momentum” in the business. And the firm’s on track to hit its targets of £5bn annual revenue from New Category products by 2025 and 50m non-combustible product consumers by 2030.

In the long run, BATS aims to become a “sustainable, high growth, multi-category, consumer products business.” And that sounds like a decent ambition to me.

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Kevin Godbold has no position in any of the shares mentioned. The Motley Fool UK has recommended British American Tobacco. 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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