Will you enjoy the high cash returns of these FTSE 100 dividend yields?

first_img 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. Will you enjoy the high cash returns of these FTSE 100 dividend yields? Our 6 ‘Best Buys Now’ Shares Kirsteen has no position in any of the shares mentioned. The Motley Fool UK has recommended Micro Focus. 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 Kirsteen Mackay 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: Getty Images. Dividends are the lifeblood of stock market investing. They create an incentive to buy and make wealth generation much swifter through the power of compounding.Two UK-listed equities with enticing dividend yields are FTSE 100 insurance company Aviva (LSE:AV) and management software provider Micro Focus International (LSE:MCRO).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…High yield insurerAviva was founded 20 years ago when two British insurers merged. It specialises in general insurance, life assurance, and pensions.The insurer has a £15bn market cap, a price-to-earnings ratio (P/E) of 7, and earnings per share of 58p. Its highly attractive dividend yield is over 7%.Billionaire investor Warren Buffett loves insurance companies, and I think he’d be a fan of Aviva. Over the years, it’s kept up its strong and increasing dividend payouts and ranks number one in UK workplace pensions. Serving 33m customers and with over 30,000 employees, it’s both well established and trusted.I think its low P/E results from an extended streamlining strategy that’s forecast to take four years to complete. The aim of this is to reduce debt and sustain its progressive dividend.Brexit also remains a risk factor, as an economic downturn could have an adverse effect on the insurer.Skyrocketing dividend alert!Micro Focus International has a £2.6bn market cap and earnings per share are £3.88. Today MCRO has a whopping dividend yield of 11.5% and its P/E is only 2. So, should this be celebrated or signal alarm bells?The MCRO share price has fallen over 57% in the past year and nearly 29% year to date.It has experienced cash flow troubles and earlier this month announced a decline in full-year profit and sales, along with the departure of its chair after a challenging year.Revenue fell 7.3% to $3.35bn for the year to the end of October 2019. The company took over Hewlett Packard Enterprise (HPE) software back in 2017 and has since confirmed that this has created many more complexities and hurdles for the business than expected.Although this massive dividend yield may well be enticing, it comes with risk. Company policy is that it must be two-times covered by the adjusted earnings of the group. So, if cash flow and revenue problems continue, then I think the dividend may be under threat of a cut.Going forward, the company is heavily invested in improving, to the tune of $70–$80m per year in 2020 and 2021, but doesn’t expect to benefit from these investments until later. For this reason, I’d avoid this share for now.Higher may not mean betterTraditionally dividend yields were used by well-established companies, with limited future growth prospects, to entice and retain shareholders. This is still the case, but companies with high growth potential have also been known to dish out dividends if they’ve achieved a level of success and want to share that with investors.Occasionally a company will increase its dividend yield to deflect attention from underlying problems and ongoing concerns. That doesn’t mean that a very low dividend yield means a bad investment. Perhaps the company is still in a period of growth and can’t afford to give too much back to shareholders.With so much global uncertainty going on in the world, these are troubling times for investors. That said, I think Aviva is a safer investment than many others in the FTSE 100 and I think its attractive dividend and low P/E make it a nice income buy. Simply click below to discover how you can take advantage of this. “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address Kirsteen Mackay | Monday, 24th February, 2020 | More on: AV MCRO 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.last_img

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