A 5%-yielding FTSE 100 dividend stock I wouldn’t touch with a bargepole

first_img Our 6 ‘Best Buys Now’ Shares I don’t care about its 5% dividend yield. Next (LSE: NXT) is a FTSE 100 dividend stock I’m dodging right now and I think you should, too.Supermarket sales might be ripping higher right now as worried consumers stockpile. It’s likely that overall sales in these outlets will remain robust, too. We all need to keep eating irrespective of economic, political, and social upheaval, right?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…On the whole though, the retail sector is in a terrible mess. It’s a point underlined by the BDO’s latest High Street Sales Tracker released on Friday. This showed that like-for-like sales in the UK tanked 17.1% in March as social distancing measures heated up and spending on non-essential items dropped. In-store purchases slumped 34.1%, it said, offsetting a 13.7% rise in online buys.Out of fashionThe country’s biggest fashion retailers are suffering the brunt of the washout, too. According to the survey, like-for-like fashion sales dropped 25.9% last month, including a whopping 40.4% decline in sales from ‘bricks and mortar’ shops. Online clothing sales took a dive, too, the BDO says.It’s no shock that the body reckons there is more pain to come as well. It comments that “consumer spending on discretionary items is an immediate casualty of the circumstances [and there are] reports suggesting a notable decline in major purchases over the coming months.”Quarantining measures are clearly having a colossal impact on Next’s bottom line. I raised this point when I last discussed the FTSE 100 firm in late March. The company makes around 43% of its total sales in its now-shuttered physical outlets.Things have gotten even worse since my most recent article on the business, though. The day after my piece was published, Next said that it was closing down its online operations as well. It said many of its warehousing and distribution workers wished to stay at home during the coronavirus crisis.Balance sheet bothersThis most recent development obviously means that full-year sales will collapse beyond the 25% that it had been modelling just one week before. Regardless, the BDO data suggests that revenues would have fallen out of the retailer’s forecast bracket even if its stores and website were still operational.The company’s guidance, then, that it could “comfortably” deal with a potential £1bn sales hit without breaking its current bond and bank facilities lies in tatters.Retail operators have been cutting dividends left, right, and centre to conserve cash and ride out the storm. Next is yet to deliver the hammer blow to investors but it appears as if a decision to delay or suspend dividends is just a matter of time. Even when it reopens its operations it’s clear Next faces an uphill task to get shoppers clamouring for its clothing lines.For this reason I’m not attracted to the firm’s 5% dividend yield. There’s no shortage of much better, safer FTSE 100 dividend stocks to buy today, so why take a gamble with Next? A 5%-yielding FTSE 100 dividend stock I wouldn’t touch with a bargepole Image source: Getty Images. “This Stock Could Be Like Buying Amazon in 1997” 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. Simply click below to discover how you can take advantage of this. Royston Wild | Sunday, 5th April, 2020 | More on: NXT center_img Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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. Royston Wild 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. 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. 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