ChatGPT thinks these are the perfect FTSE 100 dividend shares to contemplate shopping for now

Shopping for FTSE 100 dividend shares may be an effective way to generate a dependable passive revenue. The index has a few of the highest yields on provide anyplace, with loads of dependable payers.

As a eager revenue investor, I questioned whether or not ChatGPT might assist me choose dividend shares to contemplate shopping for. As a easy check, I requested the AI to advocate the perfect FTSE 100 dividend inventory to purchase immediately.

10 shares it prompt

Total, the response was in all probability a bit higher than I anticipated. To start with, ChatGPT prevented the apparent entice of suggesting only one inventory. A diversified portfolio at all times makes extra sense for revenue.

As an alternative, AI offered me with a listing of 10 shares. They actually aren’t authentic options, however I believe they’re smart sufficient.

Right here’s the total checklist. I’ve additionally included the 2025 forecast dividend yield for every inventory:

• Shell (4.7%)
• HSBC (6.7%)
• Unilever (3.6%)
• GSK (4.9%)
• Diageo (3.7%)
• Nationwide Grid (5.0%)
• Authorized & Normal (LSE: LGEN) (9.8%)
• British American Tobacco (8.4%)
• AstraZeneca (2.5%)
• BT Group (5.7%)

This checklist contains a lot of the largest firms within the FTSE 100. I’d guess that that if I owned simply these 10, my portfolio would in all probability come near monitoring the index.

How dependable are these dividends?

With a mean dividend yield of 5.5%, ChatGPT’s choice has the potential to generate a good revenue.

Nevertheless, dividends are by no means assured and could also be minimize. For instance, Nationwide Grid just lately minimize its payout (ChatGPT didn’t inform me that).

Certainly, during the last 5 years, Shell, GSK, HSBC and BT have additionally all minimize their payouts for varied causes. They’re all paying out first rate dividends now, however they aren’t probably the most dependable payers I might discover on the UK market.

The inventory I’d select…

There are a couple of shares on this checklist I believe are value contemplating. However my high decisions immediately would in all probability be the 2 I already maintain – Unilever and Authorized & Normal.

Of those two, Authorized & Normal would in all probability be my choose. The life insurance coverage and funding big is likely one of the largest gamers within the UK market, with greater than £1trn of belongings beneath administration.

Over the past decade, L&G has turn out to be a market chief within the bulk annuity enterprise, taking up remaining wage pension schemes from massive firms. This enterprise has the potential to generate dependable money flows for a few years to return.

One potential danger is that newish CEO António Simões has solely been within the function since 2023. The adjustments he’s made up to now appear smart to me, however it is a enterprise the place it takes some time for adjustments to ship outcomes.

It may very well be a couple of years earlier than we all know whether or not Simões has the precise plans for long-term development.

Nevertheless, Authorized & Normal has been in enterprise for 188 years. It has an extended file of worthwhile operations and has not minimize its dividend since 2009. I consider the corporate’s long-term future might be secure.

Metropolis analysts anticipate income to bounce again in 2025. That places Authorized & Normal shares on a forecast price-to-earnings ratio of 9.5, with a 9.8% dividend yield.

I believe the shares are value contemplating as an revenue purchase at this stage.