Approaching retirement? I’d buy FTSE 100 shares for dividend income

The shares I’d consider

If you’re new to investing, you could buy individual stocks that are suited to novices, or make it easy and buy into a FTSE 100 tracker. Another option could be to invest in low-cost exchange-traded funds (ETFs). For example, if you’re interested in dividend stocks, then the iShares UK Dividend UCITS ETF may be one to consider.

With that in mind, here are several large-cap shares I’m watching right now. I’d be willing to invest in them in 2020, especially if there’s any dip in their share prices. I’d like to buy these high-quality and dividend-paying businesses when they trade on low valuations and keep them in my portfolio for many years. Just check out their yields, price-to-earnings (P/E) and price-to-book (P/B) ratios.

• Aviva – dividend yield 7.5%, forward P/E 6.5, P/B 0.88
• Barratt Developments – dividend yield 3.6%, forward P/E 11.1, P/B 1.66
• Glencore – dividend yield 6.9%, forward P/E 10.7, P/B 0.9
• BT – dividend yield 8.9%, forward P/E 6.9, P/B 1.64
• Imperial Brands – dividend yield 10.7%, forward P/E 7.2, P/B 3.69
• Lloyds Banking Group – dividend yield 5.5%, forward P/E 8.1, P/B 0.83
• WPP – dividend yield 6.1%, forward P/E 10.5, P/B 1.27

As always, these aren’t formal recommendations. but they could be a starting point for more research. 

Finally, if you’re unsure about which type of assets may suit your needs, you may want to talk to a financial adviser before moving forward with a specific type of investment.

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