Forget Sirius Minerals! I’d earn an 11% dividend yield from this FTSE 100 stock instead

first_img Image source: Getty Images. The beleagured polyhalite miner Sirius Minerals (LSE: SXX) updated investors about developments for its ‘alternative proposal’ yesterday. This proposal looked into the possibility of debt financing from a consortium of financial investors. According to the update the proposal is no longer viable. As a result, the board is once again asking shareholders to vote in favour of the acquisition deal put forth by the FTSE 100 multi-commodity miner Anglo American. Otherwise, Sirius Minerals could face liquidation.  Getting back on track Only time will tell how the SXX story will go now. If the acquisition goes ahead, many investors will lose money. At some point or other, most of us have had to lick our wounds over poor investment calls, but we have learned that moving forward fast and trying to make better investing decisions is the surest way to get ahead again.  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…For those who are put off growth investing for the moment, but still have a risk-taking streak, I’d like to suggest the FTSE 100 tobacco giant Imperial Brands (LSE: IMB). Its current dividend yield of over 11% is equal to the capital gains on some moderate growth stocks. Its yield is also second only to the miner EVRAZ among companies in the FTSE 100 set. Some risks ahead… The reason Imperial Brands is risky is that there’s no guarantee the company can maintain its dividends. It released a disappointing trading update last week, and now expects both lower revenues and adjusted earnings per share. Its share price fell 8% on the announcement and hasn’t recovered since. At any other time, investors might not have reacted as strongly. In the past, Imperial had a policy of increasing dividends by 10% every year. Last year, however, it said it would link its dividends to earnings going forward. Considering its disapponting latest earnings’ outlook, along with its new progressive dividend policy, IMB’s dividends now carry a risk.…but calculated ones If I were to invest in IMB, though, it would be a calculated risk. For 2019, it paid a total dividend of 206.6p per share. At today’s share price, IMB’s dividend yield is 11.3%. If it were to cut its dividend into half, the yield would still be 5.7%. This is well over the average yield of all FTSE 100 companies put together. Further, if the dividend payout is withheld with a view to reinvestment in the company, that can also be good for its share price in the long term.  My view in a nutshell is that IMB’s very far from being a total loss. Despite a continued fall in its share price over the past few years, IMB is no Sirius Minerals. It’s a large FTSE 100 stock that has presence across countries and has consistently seen substantial, rising revenues. But its dividend yield does carry some risk. If you are most risk averse, there are safe stocks among FTSE 100 companies to consider too. They might not promise as high incomes, however.  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. 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. “This Stock Could Be Like Buying Amazon in 1997” Our 6 ‘Best Buys Now’ Shares Manika Premsingh | Saturday, 15th February, 2020 | More on: IMB SXX Enter Your Email Addresscenter_img Manika Premsingh owns shares of Sirius Minerals. The Motley Fool UK has recommended Imperial Brands. 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Simply click below to discover how you can take advantage of this. Forget Sirius Minerals! I’d earn an 11% dividend yield from this FTSE 100 stock instead  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. See all posts by Manika Premsinghlast_img read more