No savings at 40? I’d buy these FTSE 100 dividend stocks for a passive income

first_img “This Stock Could Be Like Buying Amazon in 1997” 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. Simply click below to discover how you can take advantage of this. The FTSE 100 achieved one of its best performances since the financial crisis last year. Despite this achievement, there are still plenty of companies in the index that appear to offer value at current levels, especially for income investors.Today I’m going to take a look at just two of these opportunities.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…BurberryRecent trading updates from global luxury group Burberry (LSE: BRBY) show that this company’s efforts to return to growth are starting to pay off. Following a period of stagnation, the company replaced its chief designer, and this has already had a strong impact on its top and bottom lines.Even though sales at its Hong Kong arm declined by a double-digit percentage during the first half of its fiscal year, overall group pre-tax profit for the period still grew 11%. Overall revenues increased by 5%.One of Burberry’s key strengths is its brand power. The company has built a reputation for quality around the world, which means customers are more than happy to pay a premium to acquire its products. This shows through in the group’s profit margins. For the past five years, Burberry’s operating profit margin has averaged more than 16%.Healthy cash generation means that the company has scope for dividend growth. The stock currently supports a dividend yield of 1.9%, which is covered twice by earnings per share, leaving plenty of room for payout growth in the years ahead.Management is also returning cash to investors with stock buybacks. Including these share repurchases, the stock’s total shareholder yield last year was around 4%.Johnson MattheyAnother FTSE 100 income stock that could pay you for life is industrial engineer Johnson Matthey (LSE: JMAT). Burberry’s best quality as a business is its brand. Johnson’s best qualities are its reputation and engineering skill.The company is one of the world’s largest producers of catalytic converters. It’s also branching out into battery technology for electric vehicles. Making products for both of these industries requires plenty of care and attention, and customers want quality over quantity. Going with the lowest bidder is a risky strategy because you don’t know what you’ll get.That’s why Johnson should remain a sector leader for many decades to come, great news for the company’s investors.The shares currently support a dividend yield of 3.1% with the payout being covered 2.5 times by earnings per share. On top of this, shares in the engineering group are currently dealing at a forward price-to-earnings (P/E) ratio of only 12.8.As such, it looks as if now could be the time to snap up a share of this world-leading business. The stock appears to offer a margin of safety at current levels. Johnson’s position in the global engineering market should ensure that this company remains a dividend champion for many decades to come. Enter Your Email Address Our 6 ‘Best Buys Now’ Shares 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. Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Burberry. 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.center_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! No savings at 40? I’d buy these FTSE 100 dividend stocks for a passive income Image source: Getty Images Rupert Hargreaves | Monday, 20th January, 2020 | More on: BRBY JMAT 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. See all posts by Rupert Hargreaveslast_img

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