Fed up with poor performance of the FTSE 100’s big dividend payers? Try these stocks instead

first_imgSimply click below to discover how you can take advantage of this. Michael Baxter | Friday, 31st January, 2020 | More on: AVV DRX LLOY Image source: Getty Images. 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. “This Stock Could Be Like Buying Amazon in 1997” Consider BT, HSBC, Royal Dutch Shell, or Vodafone. For many investors they are reliable stocks, providing a backbone to an investment portfolio. After all, they are low risk and provide good income. Then again, consider their share price performance.BT shares have fallen 30% over the last year, while today’s share price is barely more than a third of the price five years ago. Sure yield is handsome — almost 10%, but such an appalling share price performance is enough to shake any investor’s confidence.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…Or take HSBC, whose yield on the shares is close to 7%. While the share price has performed better than BT’s it is still 15% down over the last year, and flat over the last five.Then there’s Royal Dutch Shell, whose shares have fallen by a fifth over one year, and are flat over five. Its dividend yield on the other hand is north of 7%.Finally, there is Vodafone, with dividends at 5%. This company has actually seen shares rise over the last year, but the share price today is less than a half of the price five years ago.Is it worth it for the dividends?As long as these companies are forking out in excess of 5% a year, some shares in the companies might be worth hanging onto, especially if your main motivation for investing is income.On the other hand, consider how dividends as a percentage of your investment can fall over time. Take BT as an example. The dividend may be somewhere off in the stratosphere, but an investor who bought into the company five years ago would now be receiving a yield that is the equivalent of 3% of the original investment.Royal Dutch Shell has a fundamental problem. Its core product is the very thing that is vexing those who worry about climate change. It will gradually reduce reliance on oil, but you could balance your risk by also investing in good dividend paying stocks or funds that offer exposure to renewables.Consider alternativesDrax Group (LSE:DRX), for example, with a dividend yield at 5.25%, is now working on carbon capture technology. Or there is the new Octopus Renewables Infrastructure Trust, which is targeting a 3% dividend yield in year one and 5% in year two.As a complement to HSBC, Lloyds Bank (LSE:LLOY) pays out a dividend of 5.5%, but now that the PPI disaster finally seems to be receding into its past, the company is turning heads with its digital strategy.Or, if you like the idea of gaining exposure to 5G, but are not comfortable with the share price performance of either BT or Vodafone, consider a company like  Aveva Group (LSE:AVV) — it’s dividend yield is a modest 1.3%, but shares have trebled over three years.Diversification is an important part of investing. I am not saying that if you are an income investor you should eliminate BT, HSBC, Vodafone, and Royal Dutch Shell from your portfolio altogether. But I do suggest you consider spicing it up with exposure to other dividend payers that might also offer growth, too. Michael Baxter has no position in any of the shares mentioned. The Motley Fool UK has recommended Lloyds Banking Group. 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. See all posts by Michael Baxtercenter_img Our 6 ‘Best Buys Now’ Shares Fed up with poor performance of the FTSE 100’s big dividend payers? Try these stocks instead 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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.last_img read more

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