Company A: Profit Champion
Company A is a well-established FTSE 100 company with a strong track record of consistent dividend payments. With a diverse portfolio of products and services, the company has weathered various market conditions and emerged as a reliable income generator for investors. In the past, it has shown a commitment to returning to shareholders through dividends.
By investing a portion of your £20k ISA in Company A; You can tap into its dividend power. At the current dividend yield of 4%, your investment of £6,666 could earn £266.64 in dividends in the first year alone. As the company continues to grow and expand; Dividends can increase in subsequent years, making it an attractive long-term investment.
Company B: Growth opportunity
Company B is a dynamic FTSE 100 company with huge growth potential. It operates in a rapidly expanding industry and is more competitive than its peers. It may not currently offer the highest dividend yield, but its aggressive expansion strategies have the potential to boost its stock price significantly in the coming years.
By allocating part of your £20k ISA to Company B; You are positioning yourself for capital appreciation. As stock prices rise, you can benefit from capital gains. Also, the company’s dividend yield is moderate, but it can still support your annual income. Assuming Company B has a dividend yield of 2%, your £8,000 investment in Company B will yield £160 in dividends in the first year.
Company C: Defense equipment
Company C is a well-known FTSE 100 company operating in a recession-proof industry. During the economic crisis, This company is doing quite well compared to its peers. It offers a stable dividend yield and a history of consistent dividend growth. For investors looking for a defensive asset in their portfolio, Company C presents an attractive opportunity.
By investing a portion of your £20k ISA in Company C; It will benefit from its stability and dividend income. With a dividend yield of 3.5%, your investment of £5,334 has the potential to earn £186.69 in dividends in the first year. In addition, Steady growth of the company over time can lead to increased dividends and further increase your income in the future.