5 Jul

2 of the best UK dividend-paying stocks to buy right now

first_img2 of the best UK dividend-paying stocks to buy right now Image source: Getty Images There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it! As an income investor, I’m always looking for the best dividend-paying stocks to buy. But last year’s widespread dividend cuts mean I’ve fewer choices than in the past.Both of the FTSE 100 shares I’m looking at today boast 6% dividend yields. High yields like this aren’t common at the moment, but I feel confident these payouts should be sustainable.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…This 6% yield is backed by cashTelecoms giant Vodafone Group (LSE: VOD) is a big beast, with annual sales of around €45bn. After years of expansion, it’s now one of the biggest operators in Europe and Africa with a mix of fixed-line (broadband) and mobile networks.CEO Nick Read is no longer on the acquisition trail. Instead, he’s working hard to consolidate the business into a more unified, efficient, and profitable operation.However, even without the changes being made by Read, Vodafone already had one big attraction for me. This business generates a lot of cash.Vodafone’s current dividend of €0.09 per share was covered twice by free cash flow last year. I expect this to continue, hopefully supporting a return to dividend growth.What could go wrong?One challenge is that Vodafone is an expensive business to run. Maintaining and upgrading the group’s telecoms networks currently costs nearly €8bn each year. That’s roughly equivalent to two years’ profits.A second concern is that Vodafone’s European markets are fairly mature. Broker forecasts suggest the group’s revenue will only rise by about 2% in 2022 and 2023. I expect dividend growth to be similarly slow.Despite these limitations, I’d still be happy to buy Vodafone shares for their 6% yield. As a pure income play, I reckon this is one of the best dividend-paying stocks in the UK market.A turnaround opportunity?FTSE 100 insurance group Aviva (LSE: AV) has some similarities with Vodafone. Its shares offer a 6% yield and the business is under the control of an energetic new CEO, Amanda Blanc.Blanc is determined to improve the profitability and growth rate of the group’s core operations in the UK, Ireland, and Canada. Operations in other countries are mostly being sold. For example, Aviva recently announced a £2bn deal to sell operations in Singapore and Italy.I believe Blanc could end up with a war chest of cash. Some of this could potentially be used to buy back shares or pay special dividends.Is this really one of the UK’s best dividend-paying stocks?However, one concern for me is that Aviva’s track record over the last decade isn’t that great. The insurer has consistently underperformed faster-growing rivals and made several dividend cuts.As a result, Aviva’s share price is still 20% lower than it was 10 years ago. Shares in FTSE 100 peers Prudential and Legal & General have both doubled over the same period.A history of disappointing performance may be one reason why Aviva shares currently trade on just seven times forecast earnings and offer a 6.3% yield. I suspect the market wants evidence of growth before re-rating the stock.However, I think Aviva’s current valuation reflects this cautious outlook. If results improve, I’d expect the shares to rise. If not, I believe they should continue to offer a reliable 6% yield. In either case, this is a dividend share I’m happy to own. 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. Roland Head | Saturday, 20th February, 2021 | More on: AV VOD Simply click below to discover how you can take advantage of this. 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.center_img Roland Head owns shares of Aviva. The Motley Fool UK has recommended Prudential. 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. Enter Your Email Address Our 6 ‘Best Buys Now’ Shares Don’t miss our special stock presentation.It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about.They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market.That’s why they’re referring to it as the FTSE’s ‘double agent’.Because they believe it’s working both with the market… And against it.To find out why we think you should add it to your portfolio today… Click here to get access to our presentation, and learn how to get the name of this ‘double agent’! 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