£1k to invest? I’d buy FTSE 100 dividend stocks in a Stocks and Shares ISA now

first_img£1k to invest? I’d buy FTSE 100 dividend stocks in a Stocks and Shares ISA now Harvey Jones 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” Simply click below to discover how you can take advantage of this. Image source: Getty Images. 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. Enter Your Email Address Harvey Jones | Thursday, 13th February, 2020 center_img Investing £1k, or any other amount, in today’s stock markets may seem risky as coronavirus fears grow, but there is always something for investors to worry about. The US-China trade war, Middle East tensions, Brexit and slowing global growth have all made investors cautious in recent months.A good time to investIronically, investing in the FTSE 100 when others are wary can be a good move. While markets may slip in the short run, they tend to recover quickly once the immediate danger has passed, and climb to fresh highs. So this could make now a good time to invest your £1k (or £2k, £5k, whatever) in the index.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…The key to reducing risk is to leave the money invested for at least five years, and preferably much longer, to give time for stock markets to recover. Over the decades, the FTSE 100 has delivered an average annual return of 9% a year, including share price growth and reinvested dividend income.Many people underestimate the importance of dividends, but if you reinvest them for growth, they will generate a substantial part of your total return. The FTSE 100 offers one of the most generous yields of any global index at 4.24% a year, far more than you will get on cash. Any capital growth from rising share prices will come on top of that.Spread the risk aroundRecent falls may make this a good time to buy an exchange traded fund (ETF) tracking the FTSE 100, or a range of income shares. Whichever you choose, be sure to invest inside a Stocks and Shares ISA, then you can take all your returns free of tax, for life.Because of any number of global issues, you could experience a period of volatility, so the value of your money falls in the short run. However, it is important to remember that you are investing for the longer run, primarily for retirement, which could be 10, 20 or 30 years away. Over such a lengthy period, a short-term dip has little impact.In fact, dips are good opportunities to buy, as you will pick up more stock at a reduced price.Today’s low interest rates make FTSE 100 dividend stocks look particularly attractive, as you will struggle to get more than 1% on cash. This is driving demand for blue-chip stocks, which typically offer the most generous yields. You can access this simply and cheaply, by investing in a FTSE 100 ETF. I think the offerings from iShares and Vanguard are good value.Get yourself a blue-chip incomeOtherwise, do your research and build a spread of income-paying stocks. You can get yields as high as 8% a year from stocks such as housebuilders Persimmon and Taylor Wimpey, and tobacco giant Imperial Brands.Investing your £1k in an ETF tracker or stocks like these can help you build your long-term wealth. If you top up your ISA when you have more money to invest, your long-term wealth should grow over time, even with a few bumps along the way. 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. 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! Our 6 ‘Best Buys Now’ Shares See all posts by Harvey Joneslast_img read more