Investing for income? I’d buy FTSE 100 dividend stocks in an ISA after the market crash

first_imgSimply click below to discover how you can take advantage of this. 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. Peter Stephens has no position in any of the shares mentioned. 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. “This Stock Could Be Like Buying Amazon in 1997” 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. 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. See all posts by Peter Stephens Peter Stephens | Saturday, 4th April, 2020 | More on: ^FTSE center_img Our 6 ‘Best Buys Now’ Shares It’s a difficult time for investors seeking to make an income from their capital. The FTSE 100 has crashed, and some of its members have already announced dividend cuts or postponements.Meanwhile, interest rates have fallen. Cash savings and bonds now offer relatively disappointing income returns.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…However, there could be many opportunities to generate a passive income from high-quality FTSE 100 stocks. If you buy companies with solid balance sheets and affordable dividends, you may be able to build a growing income stream via a tax-efficient account such as an ISA.Dividend opportunitiesThe FTSE 100’s dividend yield has spiked to over 6%, its highest on record. This suggests investors may be expecting dividends to be cut at a sizeable number of the index’s constituents.One way investors can potentially overcome this threat is to buy stocks with highly affordable dividends and defensive business models. A company whose net profit covers its dividend payments many times over may be less likely to reduce its dividends. That is even if its profitability comes under severe pressure in the near term.Likewise, a business with defensive characteristics may not experience a marked drop in its profitability. This may make a dividend cut less likely. And companies such as those operating in the healthcare and utility sectors are obvious examples.Moreover, buying businesses with solid balance sheets and sensible growth strategies could be a sound move. They may even be able to grow their dividends, rather than reduce them.Relative appealSince the FTSE 100 currently has a generous yield, its relative appeal seems to be high for income investors. As mentioned, interest rates have fallen to their lowest ever level. Their prospect of rising rapidly over the coming years now seems to be limited. That is because the Bank of England may wish to provide support to any upcoming economic recovery. This may mean that bonds and cash fail to offer income returns that can keep pace with inflation. And your spending power would be reduced as a result.Similarly, the appeal of buy-to-let investment may be relatively low at the present time. Tax changes, affordability issues and concerns about the prospects for the economy may weigh on income returns across the sector.As such, with the FTSE 100 having a strong track record of recovery, it could offer the most appealing income investing opportunity among mainstream assets. The cost of buying a diverse range of shares has fallen in recent years, which could make it easier for more investors to build an income portfolio.Doing so may not produce stunning returns in the short run should the market crash continue. But over the long run it could be the most attractive means of generating a passive income from your capital. Enter Your Email Address Investing for income? I’d buy FTSE 100 dividend stocks in an ISA after the market crash 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!last_img read more