A 7%-yielding FTSE 100 dividend stock I’m convinced will help me retire in luxury

first_img Rupert Hargreaves owns shares in British American Tobacco. 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Simply click below to discover how you can take advantage of this. 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. Image source: Getty Images. 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. “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Sharescenter_img A 7%-yielding FTSE 100 dividend stock I’m convinced will help me retire in luxury 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. The FTSE 100 has recovered strongly from its stock market crash at the beginning of the year. However, despite this performance, some of the index’s constituents continue to offer value.There’s one company, in particular, with a dividend yield of more than 7% that may be worth buying for your portfolio today. 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…FTSE 100 dividends on offer British American Tobacco (LSE: BATS) is a leading FTSE 100 income stock. It’s also one of the few blue-chip companies that has stood by its dividend in the coronavirus crisis. Its latest trading update shows that, despite the global pandemic, sales have held firm. Nonetheless, management also warned the near-term outlook for the business is highly uncertain. Indeed, the company has already had to revise growth guidance lower once already this year. It’s now expecting full-year revenue growth of 1-3% and profit growth in the mid-single-digit range.That’s disappointing, but it’s significantly better than most of the FTSE 100 firm’s blue-chip peers, which are forecasting a sales decline. Moreover, the group has a strong balance sheet and an established position in the global tobacco market. That suggests it could be in an excellent place to recover when growth returns to the worldwide economy. The FTSE 100 dividend champion may also be able to take market share from weaker competitors who haven’t been so lucky. British American has a history of doing just that. Over the past six years, it has reported earnings growth of around 9% per annum. Organic expansion, market share growth, and acquisitions have all contributed to this performance. As the company’s bottom line has expanded, it’s also been able to grow its dividend payout. The per-share dividend has more than doubled over the past decade to just over 200p today. Only a handful of other FTSE 100 businesses have produced the same rate of dividend growth over the same time frame. So, while British American may face more uncertainty in the near term, over the long run, the company should prosper. That suggests now might be a good time to snap up the shares while they trade at a bargain valuation. Bargain stockDespite the coronavirus crisis, and the impact it’ll have on the FTSE 100’s company’s growth this year, British American is still planning to pay a dividend. After recent declines, the stock supports a dividend yield of around 7.4%. That’s nearly double the FTSE 100 average. On top of this market-beating dividend yield, the shares look cheap. On average, City analysts believe the stock is worth 3,800p. That’s a potential increase of 30% from current levels. The most optimistic forecasts suggest the stock could be worth as much as 4,800p, a rise of 64% from current levels. As such, it appears as if British American has the potential to produce high total returns for investors in the coming years. It offers a combination of income and capital growth few other FTSE 100 companies may be able to provide in the current economic environment. Enter Your Email Address Rupert Hargreaves | Friday, 10th July, 2020 | More on: BATS See all posts by Rupert Hargreaveslast_img