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I think now’s a great time to go shopping for FTSE 100 dividend stocks.
UK blue-chip shares tend to have one or several special qualities that make them ideal for dividends. Market-leading positions, strong balance sheets, and diversified operations often lay the path to large dividends that can grow over time.
And right now, shares on Britain’s leading stock index look mightily undervalued. FTSE 100 companies now trade on an average forward price-to-earnings (P/E) ratio of 10.5 times. That’s some way below the historical average of approximately 16 times.
Here are two cheap passive income stocks I’m thinking about buying in March. Each carries a dividend yield far above the 3.8% Footsie forward average.
United Utilities
Water companies like United Utilities (LSE:UU.) are dependable dividend payers thanks to their ultra-defensive operations.
Our demand for water remains unchanged regardless of…
