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Charged with the task of buying one FTSE 100 dividend stock to hold for the next decade, I know which company would be on my shopping list.
What makes this dividend stock so great?
Before revealing the identity of my favourite top-tier income provider, it makes sense to briefly say why I selected it.
First and foremost, I wasn’t hunting for the stock with the biggest dividend yield.
While there are certainly exceptions to the rule, a monster payout can be a signal that the market has concerns about how well a company is trading. In such a situation, these concerns can cause investors to sell and the share price to fall. This pushes the yield up, but then there’s a big question mark about whether it will actually be paid.
Call me boring but I’d rather receive an average dividend over a bigger one that never arrives.
Instead of size, I place more importance on whether…
