Two 7% FTSE 100 dividend shares I want to buy in February

first_img See all posts by Roland Head 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 I’ll declare an interest. I already own shares in both of the companies I’m going to write about today. But I want to buy more in February. Let me explain why.A genuine bargain?FTSE 100 insurance group Aviva (LSE: AV) is sometimes seen as a laggard, without the growth and specialist focus of some rivals. But while it’s true that Aviva has been a slow grower in recent years, I don’t think investors need to worry about this too much.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…In my view, any risks faced by shareholders are already in the price. As I write, the Aviva share price stands close to 400p. That prices the stock on just seven times forecast earnings, with a dividend yield of 7.7%.This payout should be covered 1.9 times by 2019 earnings, so a cut seems very unlikely. It’s also worth noting that the group’s surplus cash generation has comfortably covered the dividend in recent years, making a cut seem very unlikely.Win-win scenarioTwo things could happen next. Aviva boss Maurice Tulloch could succeed where his predecessors have failed by returning the group to growth. He’s already launched plans to sell some non-core businesses and split the UK business into separate life and general insurance divisions.If Tulloch fails, then I think that Aviva could be split up or perhaps even sold. If so, then I’d expect this process to release value for existing shareholders.Aviva is one of the core holdings in my personal income portfolio. The capital gains on my position have been limited but the income I’ve received – over a number of years – has been excellent. I think the shares are too cheap and rate them as a strong buy for income.Go against the crowdInvestors aren’t exactly queuing up to buy shares in Royal Dutch Shell (LSE: RDSB) at the moment. The Shell share price has already fallen by 10% this year and is down by over 20% from last summer’s high of £26.There are several reasons for this.A growing number of investors have environmental commitments that are hard to square with fossil fuel investment.The market is also concerned about the risk of stranded assets – oil and gas reserves that won’t be extracted because of changing demand (or legislation). That risk may still be some way in the future. But lower oil prices are here today and have hurt Shell’s profits over the last year.In 2018, Shell sold its oil for an average of $63.85 per barrel. In 2019, this figure fell by 10% to $57.76 per barrel. Gas prices dropped by 11% as well. Weaker prices caused the group’s underlying net profit to fall by 23% to $16.5bn in 2019.My viewShell’s profit slump has left the stock trading close to 2,000p, at its lowest level since late 2016. The shares are now trading on just 10 times forecast earnings, with a dividend yield of almost 7%.I reckon this is too cheap. Shell hasn’t cut its dividend since the Second World War and shows no sign of doing so now. Cash generation remains healthy and the company is taking steps to prepare for a lower carbon future. At current levels, I think the stock’s 7% yield could make it a great buy for income investors. Two 7% FTSE 100 dividend shares I want to buy in February “This Stock Could Be Like Buying Amazon in 1997” Image source: Getty Images. Roland Head owns shares of Aviva and Royal Dutch Shell B. 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.center_img 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. Roland Head | Friday, 31st January, 2020 | More on: AV RDSB Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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