5 dividend stocks that calculate an average of 8.9%!

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The FTSE 100 is full of dividend stocks and income opportunities. In fact, 99 out of 100 companies in the UK's flagship index provide investors with passive income. And now the five largest returns are 7.7%in Phoenix Group Holdings (10.3%), M & G (9.2%), Legal and General Group (8.8%), Taylor Wimpey (8.4) and Vodafone (LSE: VOD).

This basket of these five dividends is combined, with an average return of 8.9%and almost three times the current payment level of FTSE 100. It seems to be quite a variety of mini -income portfolios, exposed to financial services, insurance, construction and telecommunications industries.

Is it time to snap dividends with the yield still high?

Yield

As an exciting level of interest, such as obtaining a sound yield of nearly 9%, is generally attached to a significant risk. After all, almost immediately investors are often excellent in dead care dividends. And a large amount of purchasing activity will increase the stock price and lower the yield. Therefore, if the yield is close to the area of ​​two digits, it usually means that investors are paying attention to the upcoming threat.

Digs deeper

Let's expand Vodafone. In the last 12 months, investors have received about 5.68p dividends per share after switching from the euro. The current stock price is 7.4p, which offers 7.7%yield.

And if you look at the price -to -return ratio, Vodafone shares are not exactly expensive and are traded by imports of 9.2. Then why aren't more investors jumping on this opportunity?

The answer is in Germany. The company's core market is becoming a problem as many customers switch to cheap competitors as Vodafone continues to high King. Germany's imports have been reduced by 6.4% in December in December, with the recent change of laws that prevent the landlord from bundling cable TV.

This is more than 6.2% of the last quarter. And even if the influence of this law is removed, sales are still in the wrong direction at acceleration.

This is a serious problem considering the Germans who are responsible for one -third of Vodafone. Executives have actually warned of allegations of disability in the German business in the upcoming May results.

What does this mean for dividends?

In addition to the disappointing results of Germany, Vodafone's business has a bright point. The UK market appears to have returned to three merger with upcoming merger, which is expected to cause new growth. Meanwhile, the M-PESA FINTECH mobile payment platform continues to grow in the African market.

Unfortunately, this progress seems to be insufficient to maintain shareholder payments. And the management later cut dividends in half. Instead of paying 0.45 per week every six months, Vodafone shares are now only available per share. And if it is converted from the current exchange rate to pound, the yield is not 5.1%, not 7.7%.

Everything considered, executives seem to take the necessary measures to correct the ship. But at this time, Vodafone stocks will remain in my surveillance list. There are challenges for other stocks in this list. Before investing, you need to do a lot of research to determine whether potential compensation is valuable.

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