3 top FTSE dividend stocks to consider buying before it’s too late

It’s in all probability by no means too late to purchase good long-term dividend shares. However we are able to simply miss probabilities to purchase them at actually low cost costs. I feel these three might be good long-term buys. However I reckon one of the best alternatives may quickly move.

BT Group

I’ll begin with one which’s possibly a bit controversial. BT Group (LSE: BT.A). It’s been paying first rate dividends for years, with a present ahead yield of 5.7%.

However on the identical time, it’s been shelling out large quantities in capital expenditure (capex) and, on the identical time, constructing monumental money owed. As sentiment’s pale, the share value has fallen 25% up to now 5 years.

So what do I feel’s altering? Effectively, the worth bounce since Might’s all all the way down to the corporate telling us it’s handed the purpose of peak capex, and is at an “inflection level“.

Buyers may see BT at a degree of money circulate reversal, with increasingly of the stuff rolling in over the following few years. And the bearish sentiment of the previous few years might reverse.

There’s nonetheless some solution to go thoughts, and it might probably take a very long time to regain the market’s confidence. BT may want one other couple of units of outcomes so folks can see cash the place its mouth is.

However I feel confidence within the dividend have to be firmer now.

Nationwide Grid

My subsequent choose, Nationwide Grid (LSE: NG.), has additionally been by means of a key change. However this time we noticed the share value pushed down, not up.

It’s all in regards to the new inventory situation, at a discount value to present shareholders. It diluted the dividend and I can perceive the share value fall. However I see it as overdone.

The forecast dividend yield, at the moment 6%, seems to be fairly good. Particularly for a inventory I feel has one of the steady outlooks of any within the FTSE 100.

The chance is that long-term confidence within the dividend may not get better. And now it’s finished it as soon as, what’s to cease Nationwide Grid issuing extra shares each time it needs a bit extra capital? And diluting the dividend a bit extra.

But when confidence does maintain and the share value recovers, I can see that 6% yield not lasting for much longer.

Phoenix Group Holdings

My remaining selection, Phoenix Group Holdings (LSE: PHNX), is just due to its large dividend. Effectively, and since I see an honest likelihood it might be sustainable.

Once more, the share value has had a foul few years, together with a lot of the insurance coverage sector.

And I simply can’t see a ten% dividend staying at 10% for very lengthy.

Certainly one in all two issues has to occur. Both the dividend received’t be sutainable and can be lower. Or traders will sensible up and begin shopping for the shares, pushing the worth up and the yield down.

Forecasts present it is going to be regular within the subsequent few years, however not coated by earnings. And that, whether or not the earnings cowl might be achieved, might decide which of my two situations will come to move.

These three might go both method. However they should be price contemplating for dividend traders.