July 5

3 dividend stocks I’d buy for my ISA to beat low interest rates

first_img Image source: Getty Images. Roland Head | Saturday, 29th February, 2020 | More on: DLG LAND VOD Today’s super-low interest rates make it difficult for savers to make any money from their cash. As I write, the best easy-access Cash ISA rate I can find is just 1.3%. That’s less than inflation, which means the spending power of your money will fall while it’s in your account.If you don’t expect to need the money for a number of years, I believe dividend stocks can provide a better way to generate income. Today, I want to look at three high-yield dividend stocks I’d buy for a Stocks and Shares ISA.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…A return to growth?The Vodafone Group (LSE: VOD) share price has been a poor performer in recent years. But the group’s consolidation under newish chief executive Nick Read appears to be going well and the latest trading figures show a return to growth.In my view, any disruption caused to the group’s operations by the coronavirus is likely to be short-lived. Looking beyond this, I see a good chance for dividend investors to buy into a stable, mature business with attractive cash generation.Vodafone is now Europe’s largest ‘converged operator’ — it has mobile and fixed-line networks which reach 124m homes and businesses. Profits are expected to rise strongly over the coming year and I believe the group’s free cash flow will continue to support the 5.6% dividend yield.If you’re looking for a quiet life and a reliable income, I think Vodafone shares are worth considering.A top FTSE 100 landlordFTSE 100 firm Landsec (LSE: LAND) is one of the UK’s largest listed landlords. This real estate investment trust (REIT) has a £6.7bn market-cap and a portfolio valued at £13.4bn. That’s equivalent to a net asset value of 1,298p per share.Given this, you might wonder why the Landsec share price is currently hovering at around 875p. The coronavirus outbreak has made things worse, but the shares already traded at a discount to net asset value, thanks to Landsec’s exposure to retail property.This sector is troubled at the moment, but it accounts for less than half the firm’s portfolio. Most of the remainder is high-quality office accommodation, which has continued to perform well.In my view, Landsec’s top-quality portfolio and low debt levels make the dividend look pretty safe. At current levels, the shares offer a dividend yield of 5.2%. I see that as a buying opportunity.Insurance incomeInsurance companies have always been a popular choice with income investors, thanks to a business model that tends to generate surplus cash. One of my favourites in this sector is FTSE 100 motor insurer Direct Line Insurance Group (LSE: DLG).Since floating on the stock market in 2013, Direct Line has returned just over 200p per share to shareholders through dividends. That’s nearly 65% of its current market-cap. Over the same period, the shares have also doubled in value.Market conditions have been tough over the last few years, but the company has been investing in technology aimed at providing more accurate pricing and cutting customer service costs.At current levels, the shares offer a forecast dividend yield of around 7%. This stock has been a good investment so far. I rate the shares as a buy, and add to my own holding over the coming weeks. Our 6 ‘Best Buys Now’ Shares Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997” Simply click below to discover how you can take advantage of this. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool.center_img Roland Head owns shares of Direct Line Insurance. The Motley Fool UK has recommended Landsec. 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. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. See all posts by Roland Head 3 dividend stocks I’d buy for my ISA to beat low interest rates Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!last_img

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Posted July 5, 2021 by admin in category "fmzgahak

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