Forget Tesco! I’d rather buy other FTSE 100 dividend stocks

first_img Enter Your Email Address Royston Wild | Wednesday, 8th April, 2020 | More on: TSCO 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. 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Royston Wild Our 6 ‘Best Buys Now’ Shares Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Tesco. 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 Forget Tesco! I’d rather buy other FTSE 100 dividend stocks “This Stock Could Be Like Buying Amazon in 1997” 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. If you’re looking for safe-haven stocks today, then buying into companies that are involved in the production, distribution and sale of food is largely a good idea. But is buying shares in Tesco (LSE: TSCO) a good idea?On Wednesday Britain’s biggest supermarket chain advised that it’ll take a hit of between £650m and £925m as a result of the pandemic. It blamed “significant cost increases in payroll, distribution and store expenses”as the reason behind the big bill.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…While the panic-buying at the start of the crisis has mostly subsided, outgoing chief executive Dave Lewis commented that “there are [still] significant extra costs in feeding the nation at the moment.”Tesco under pressureThe UK’s supermarkets witnessed a boom in demand at the start of the crisis as stockpiling fever gripped the nation. Tesco saw sales leap 30% in the first few weeks of the crisis. It understandably caused significant problems for its supply chain though.Sure, the FTSE 100 firm might be over the worst of the supply crisis. But there remain a number of other problems that it is suffering from. Its Booker wholesale division has been struck by “a weak market in both the wholesale and catering sectors”as restaurants, pubs and a wide array of other leisure facilities have had to shutter operations.It also faces the problem of its stores only being half-filled due to social distancing requirements. Tesco doesn’t have much capacity to make up for lost sales through its online division, either. It admits that 85% to 90% of all food bought will require a trip to one of its stores.On top of this, Tesco has had to recruit 45,000 new staff members because of what it describes as a “significant absence” of existing workers. With Covid-19 infections continuing to rise, it looks like the business will have to keep on recruiting too.Long-term questionsThe supermarket’s troubles are deep and numerous. It’s no wonder that it advised today that “it would not be prudent to provide financial guidance for 2020/21.”Despite its current travails though, could Tesco still be considered a sound long-term buy? Again, food retailing is one of those industries that will be around until the end of days. And as the country’s largest grocer, this Footsie share is in great shape to ride this trend, right?I’m not convinced. I worry about the impact that rising competition (particularly from the likes of discounters Aldi and Lidl) for its physical stores poses. It’s likely that the fragmentation of the grocery market will begin to grow for its online business too, as new players emerge and existing internet retailers ramp up their operations.Tesco’s forward P/E ratio of around 12 times makes it cheap on paper. But it’s still a share that carries too much risk for my liking. I’d much rather buy other Footsie-quoted shares instead. Simply click below to discover how you can take advantage of this. 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