3 FTSE 100 dividend stocks I won’t touch in 2021

first_img Enter Your Email Address 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. 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. Our 6 ‘Best Buys Now’ Shares 3 FTSE 100 dividend stocks I won’t touch in 2021 Rupert Hargreaves 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. Many FTSE 100 dividend stocks currently look attractive from an income perspective. However, in my experience, chasing companies just because they appear to offer a better dividend than the rest of the market can lead to disaster.That’s why I’m careful about the companies I invest in right now. I think a large number of FTSE 100 stocks may be forced to slash their dividends in the new year.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…FTSE 100 dividend stocksWhen analysing dividend investments, there are a couple of red flags I’m always on the lookout for. These include high levels of debt, low returns on investment and a lack of dividend cover. If there’s one business that ticks all of these boxes, it’s BT. The telecommunications giant cancelled its dividend to investors earlier this year. A few weeks ago, it reversed this decision.Management announced that the business would resume dividend distributions in March 2022. The group is targeting a progressive policy commencing with a 7.7p per share payout.This looks promising, but I wouldn’t buy BT for its income potential. The company has a considerable amount of debt, it’s losing customers to competitors, and costs are high. While the group may be able to stick to its dividend timetable, I think there are plenty of other income investments out there with better potential. Another one of the FTSE 100 dividend stocks I’d stay away from next year is SSE. This utility group is in the middle of a transition. It wants to become one of the UK’s primary renewable energy businesses. This target is commendable, and management is already outlining a multi-billion pound capital spending programme to get there.Unfortunately, the group already has a lot of borrowing. This may restrict its ability to both invest for the future and return cash to investors.I’m not saying the company will cut its dividend in 2021. Although, I think if SSE is serious about investing in renewable energy, the organisation may need to reduce the payout to preserve its balance sheet and investment plans. Under fire from investors St. James’s Place was one of the most attractive income investments in the FTSE 100. Indeed, I’ve recommended the stock on several occasions. However, the firm’s outlook has changed significantly this year. It has faced significant pressure in the press regarding its high fees and, recently, a large investor criticised the group’s high level of executive pay and low investor returns.Management has already reduced the interim dividend for the year. A decision on the final payout is expected in February. I think it’s likely investors will see a further reduction in the distribution.On that basis, I’m avoiding the stock in 2021. St. James’s is facing a lot of flak, and this may hold back its growth in the near term. In my opinion, there are plenty of other companies that offer a better risk-reward ratio for long-term investors.  There’s a ‘double agent’ hiding in the FTSE… we recommend you buy it!center_img Click here to get access to our presentation, and learn how to get the name of this ‘double agent’! Rupert Hargreaves | Saturday, 5th December, 2020 Don’t miss our special stock presentation.It contains details of a UK-listed company our Motley Fool UK analysts are extremely enthusiastic about.They think it’s offering an incredible opportunity to grow your wealth over the long term – at its current price – regardless of what happens in the wider market.That’s why they’re referring to it as the FTSE’s ‘double agent’.Because they believe it’s working both with the market… And against it.To find out why we think you should add it to your portfolio today… Simply click below to discover how you can take advantage of this. Image source: Getty Images See all posts by Rupert Hargreaveslast_img