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I hate to tempt fate, but the FTSE 100 It has been solidly above 8,000 points for almost a month.
That means some of its top dividend yields have fallen a bit. But I still see fat, pretty people I could get for long-term passive income.
These five could be my favorite dividend stock buys right now, based on the following forecasts.
| Stock | Recent price |
Dividend 2024 |
Dividend 2025 |
Dividend 2026 |
| Phoenix group holdings | 508p | 10.4% | 10.8% | 11.0% |
| British American Tobacco | 2,460p | 9.5% | 9.9% | 10.4% |
| Taylor Wimpey | 148p | 6.4% | 6.5% | 6.5% |
| BT Group | 131p | 6.1% | 6.4% | 6.4% |
| NatWest Group (LSE: NWG) | 314p | 5.4% | 5.6% | 6.0% |
| Average performance | 7.6% | 7.8% | 8.1% |
Passive income
These are spectacular returns, even with the FTSE 100 on the rise in 2024. I think our top Footsie share prices still have a long way to go.
And I wonder if 2024 could become one of the best years to buy income stocks in a decade.
It would be nice to take home 7.6% annually. But even better, reinvesting the money into new stocks each year could help us build a big fund for retirement.
the best bank
As the months go by, my opinion on the best value bank stocks changes. This is inevitable as stock prices fluctuate and outlooks vary. And at the moment it's NatWest.
HSBC Holdings It offers a higher dividend, but I don't want any China risk. Of the rest, NatWest's dividend seems the best to me and the share valuation is also low.
In addition, the government is liquidating its stake, acquired when the bank was known as Royal Bank of Scotland and needed a bailout.
When everything has been sold and NatWest is back in the hands of the free market, I think the share price could get a further boost. But as things stand, I maintain Lloyds Banking Groupand I don't want to add another bank yet.
Financial risk
I also have Phoenix Group on my list, so I'm doubling down on my risk in the financial sector here. And with a weak economic outlook, it's a real risk.
NatWest, along with other banks, reported a drop in profits in the first quarter. And Bank of England rate cuts, when they come, could hurt our banks' lending margins. In the current global scenario, everything related to finance and insurance could be affected by an unstable year or two.
Still, the only reason I wouldn't buy Phoenix now is that I have some Aviva Share. And just like the banks, in 2024 I will only have one insurance company.
Long-term purchases
Of the rest, I bought a few. Khaki shares, otherwise I would like to buy in the home construction market for the long term.
I'm warming B.T. dividend too, despite the company's large debts. BT's latest results make me think it is turning a corner and the dividend could be stable now.
So if I didn't already own stocks in three of the sectors here, these five could easily be my next passive income purchases.
