3 UK dividend stocks I’d buy in October

first_img Our 6 ‘Best Buys Now’ Shares 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. 3 UK dividend stocks I’d buy in October 5 Stocks For Trying To Build Wealth After 50 Simply click below to discover how you can take advantage of this. Click here to claim your free copy of this special investing report now! Edward Sheldon owns shares in Legal & General, Reckitt Benckiser, and DS Smith. The Motley Fool UK has recommended DS Smith. 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. Edward Sheldon, CFA | Friday, 2nd October, 2020 | More on: LGEN RKT SMDS center_img Image source: Getty Images. Markets around the world are reeling from the coronavirus pandemic…And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away. See all posts by Edward Sheldon, CFA Enter Your Email Address 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. The UK stock market is home to many great dividend-paying companies. Whether you’re looking for high yield, or dividend growth, there are plenty of opportunities.Here’s a look at three UK dividend stocks I’d buy in October.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…Strong high-yield playOne UK dividend stock that stands out to me as a bargain right now is Legal & General (LSE: LGEN). Its share price has taken a big hit this year and it currently trades on a forward-looking P/E ratio of just 6.8. The prospective dividend yield on offer is a high 9.3%For a long time, I’ve seen Legal & General as one of the FTSE 100’s best high-yield plays. Unlike many other high-yield stocks, LGEN actually has plenty of growth potential. Recent news from the company has reinforced my view. While a large number of other FTSE 100 companies have suspended, cancelled, or cut their dividends this year, L&G has maintained its payout.One thing that looks interesting here is on 25 September, the chairman purchased 41,974 shares. This is a good sign, in my view. It suggests the insider is confident about the future and sees the stock as currently undervalued.All in all, I see a lot of appeal in Legal & General right now. I’d buy this dividend stock today.Top UK dividend stockIf dividend safety is your focus, I’d take a look at consumer goods company Reckitt Benckiser (LSE: RB). It doesn’t offer the highest yield. Currently, the prospective dividend yield is just 2.3%. However, in my view, this is one of the safest dividend stocks in the entire FTSE 100.There are a few reasons I see RB’s dividend as very safe. Firstly, the company – which focuses on health and hygiene – is pretty much recession proof. Consumers buy its products irrespective of economic conditions. Secondly, its hygiene sales are booming due to Covid-19. I expect this trend to persist for a while. Finally, the dividend coverage ratio – a key measure of dividend safety – looks robust at 1.8.Reckitt shares are a little pricey. Currently, the forward-looking P/E ratio is about 24. Yet given the global focus on hygiene, I think the stock can climb higher. Barclays has a price target of 9,000p. That’s about 17% above the current share price.Value opportunityFinally, I also think FTSE 100 packaging company DS Smith (LSE: SMDS) is worth a look right now. It has been a solid dividend payer in the recent past. However, it suspended its payout earlier in the year due to Covid-19 uncertainty. Recently though, it announced it plans to reintroduce its dividend shortly.The reason I see appeal in DS Smith is that I’m very bullish on the online shopping theme. In the UK, the percentage of overall retail sales represented by online sales has jumped from approximately 6.5% to around 20% over the last decade. Covid-19 is likely to accelerate the trend. Packaging companies are a great way to get exposure to the theme.DS Smith has plenty of exposure to e-commerce. As a result, the business hasn’t been impacted badly by the coronavirus. However, its share price has still taken a large hit this year. I think buying the stock now, while it’s still beaten down from Covid-19 uncertainty, could be a smart move. The P/E ratio using next year’s earnings forecast is just 10.4.last_img read more

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