With 7%+ yields, which of these FTSE 100 dividend stocks should I buy?

Generally, only one FTSE 100 sector can dominate the checklist of high-yield dividend shares. However proper now, I see prime yields from a variety of companies.

With such alternative, selecting the very best to purchase is difficult. However as we speak, I need to have a look at three I’ve on my shortlist, and at how I’ll determine.

They’re three very totally different companies… insurance coverage, telecoms and tobacco.

Authorized & Basic

Authorized & Basic (LSE: LGEN) is my insurance coverage choose proper now, with its forecast 8.2% yield. The share worth has bounced again since Covid, but it surely’s nonetheless down over 5 years.

Dealer forecasts present the dividend rising, with earnings rising to cowl it, in order that yield seems to be sturdy to me.

I’ve all the time appreciated insurance coverage shares, and I’ve owned Authorized & Basic up to now. Proper now, I maintain some Aviva shares. And the rocky journey I’ve had with these exhibits how unstable this cyclical sector will be.

I believe that’s the large threat. Insurance coverage shares can get overheated in bullish instances, and fall too far when the bears are out and about.

How do I price the steadiness of the dividend within the coming years, in comparison with different Footsie sectors? That would be the key level behind my choice.

British American Tobacco

Subsequent is a pure client alternative. It’s British American Tobacco (LSE: BATS), on a forecast yield of 9.8%. We’ve seen an excellent more durable 5 years for the share worth this time.

The problem with this inventory is, I believe, pretty clear. It’s a money cow that’s producing oodles of income, which imply fats dividends. However for a way for much longer?

Tobacco is on the way in which out, proper? Properly, loads of the world doesn’t appear to assume so. And British American is a frontrunner in alternate options to smoking the stuff.

So will it final lengthy sufficient for the dividend to make me a adequate achieve? I believe so. However do I must take that threat when there are others I price as safer? That’s the large query.

BT Group

For years I’ve shunned BT Group (LSE: BT.A). We simply don’t purchase shares in firms carrying such big debt, will we? And the share worth slide appeared to bear that out.

However typically I sit again and surprise if I overthink issues a bit. It’s simple to do after we analyse shares, isn’t it?

Regardless of the debt, BT has been a dividend machine for years. It was hit through the pandemic, however shortly got here again.

We’re taking a look at much less in money phrases now, however the share worth means the forecast yield is up at 7.4%. And BT makes dividends a precedence. So if it could actually simply preserve paying out the money, why not simply sit again and take it?

That concept might collapse if BT goes the way in which of Vodafone, decides it wants a shakeup, and slashes the dividend. And debt is all the time a threat.

Which one then?

I in all probability shouldn’t purchase one other insurance coverage inventory, and may diversify a bit extra first. However I believe Authorized & Basic is my alternative of those three — and it’s undoubtedly a candidate for my subsequent purchase.

The opposite two are staying on my checklist although.