Forget a Cash ISA. I’d buy these 2 FTSE 100 dividend stocks to make a passive income

first_img 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. Forget a Cash ISA. I’d buy these 2 FTSE 100 dividend stocks to make a passive income See all posts by Peter Stephens 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. Peter Stephens | Thursday, 13th February, 2020 | More on: BNZL BP Image source: Getty Images. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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.center_img Enter Your Email Address “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares With the interest rates on Cash ISAs generally being less than inflation at the present time, buying FTSE 100 dividend shares could be a worthwhile move.It could improve your passive income today, enable you to obtain a growing income return in the coming years, and provide scope for impressive capital returns in the long run.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…With that in mind, here are two FTSE 100 stocks that offer a mix of improving income returns and share price recovery potential.BunzlInternational distribution and support services company Bunzl (LSE: BNZL) has experienced a challenging period. Its most recent trading update highlighted the difficult macroeconomic conditions it faces in many of its markets. As such, its adjusted revenue is expected to have increased by just 1% for the full year.Looking ahead, Bunzl is forecast to post a fall in its bottom line of 1% this year, while a 2% rise in 2021 suggests that further challenges could be ahead.However, this could mean that the stock is a worthwhile buying opportunity. It currently trades on a price-to-earnings (P/E) ratio of 15.4, which is below its long-term average rating. This suggests that it offers a margin of safety following its share price fall over the past year.In addition, it has a dividend yield of 2.8% that has scope to improve as a result of Bunzl’s dividend being covered 2.4 times by net profit. And since the company has a number of acquisition opportunities in its pipeline following the £120m it spent in 2019 on buying businesses, its long-term growth rate in sales and profit could improve. As such, now may be the right time to buy a slice of the stock while investor sentiment is relatively weak.BPAnother FTSE 100 share that has fallen out of favour with investors in recent months is BP (LSE: BP). The oil and gas company has, like many of its peers, experienced highly challenging operating conditions in recent quarters. Oil and gas prices have fallen, and could continue to do so, as fears surrounding the prospects for the world economy have caused demand growth to slow.BP now offers a dividend yield of 6.9% following a disappointing period for its share price. While further challenges may be ahead, and its bottom line could fail to improve significantly in the short run, its dividends are due to be covered 1.3 times by net profit this year. This suggests that there is ample headroom for the business when making shareholder payments, and that they may prove to be more resilient than the dividends of some of its sector peers.The stock’s P/E ratio of 11.2 suggests that investors may have priced in the uncertainty facing the oil and gas industry. As such, now could be the right time to buy it for the long term. Peter Stephens owns shares of BP. The Motley Fool UK has no position in any of the shares mentioned. 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. Simply click below to discover how you can take advantage of this.last_img

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