I’m eyeing up some Shares and Shares ISA investments over the winter, and my cash shall be largely going into dividend shares.

My huge downside is that there are such a lot of enticing yields on the market, it’s laborious to decide on.

If I had the money prepared in the present day, a portion of it could nearly definitely go into financial savings and investments supervisor M&G (LSE: MNG).

The M&G share price has been flat for the previous few years, and that’s helped push the forecast dividend yield as excessive as 9.5%.

No free cash

There’s no such factor as risk-free money, and we will by no means assured a dividend. Generally, the earnings simply aren’t there to cowl it… which is strictly what occurred to M&G within the final two years.

It nonetheless saved up the funds, although. And forecasts present the dividends must be coated by earnings within the subsequent few years. However solely simply.

In the event that they’re proper, earnings per share (EPS) ought to bounce again this 12 months, however then keep largely flat for the subsequent two years. And EPS would cowl the forecast dividends by solely round 1.2 to 1.3 instances.

So the dividend may come beneath strain, and the shares may tank if we now have a lower.

However the important thing cause I wish to purchase is that I feel the UK inventory market may very well be in for a protracted bull run. And whether it is, funding managers ought to do properly.

Torn

The following FTSE 100 dividend that I actually just like the look of leaves me torn, for moral causes. It’s British American Tobacco (LSE: BATS).

Regardless of a robust share price run this 12 months, forecasts nonetheless put the dividend yield up at 8.5%.

Clearly, the way forward for tobacco defines the actual long-term threat. And I do assume that smoking the stuff will ultimately die out.

I reckon it may take a really very long time to persuade the billions within the creating world to kick the behavior, although. And British American is main the way in which with alternative routes of consuming it.

There’s a good bit of guesswork on my half there, although. And we actually don’t know what sort of market these vape issues will ultimately get pleasure from.

I in all probability gained’t purchase, just because it’s tobacco. However I want I may really feel comfy going for that fats dividend.

Purchase the grid

I actually can buy some Nationwide Grid (LSE: NG.), with its 5.5% forecast yield. I’ve been telling myself that for years, however I’ve by no means really hit the button.

I’m not likely certain why, but it surely’s in all probability down to one thing else catching my eye every time I’ve the cash. An even bigger yield, perhaps a development inventory, or a brilliant low cost small cap.

No matter it’s, I’ve missed out on a long time of what I reckon has turned out to be one of many Footsie’s greatest dividend shares.

This 12 months’s new fairness difficulty, which has diluted the dividend a bit, shook confidence in Nationwide Grid. And having achieved it, will the corporate want to seek out additional cash for enlargement once more?

That’s doable, and it may maintain sentiment weak. However I need to purchase some sooner or later.