Forget Cash ISAs. I’d buy cheap FTSE 100 dividend stocks today to make a passive income

first_img 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. Enter Your Email Address Economic uncertainty has caused many FTSE 100 companies to delay, cancel, or cut their dividends. As such, it’s more difficult than it was just a few months ago to generate a passive income from FTSE 100 shares.However, there are still some companies offering high yields in the current year. And, over the long run, the index appears to offer significantly greater income return prospects than other income-producing assets, such as a Cash ISA.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…Therefore, now could be the right time to buy FTSE 100 dividend stocks for the long run to generate a passive income.FTSE 100 dividend opportunitiesAlthough a large proportion of FTSE 100 dividend stocks are not set to make shareholder payouts in the short run, some sectors have not been affected by coronavirus in terms of their financial performance.For example, healthcare, utility and some consumer goods businesses have recently reported relatively robust financial performances. Their financial prospects are less closely correlated to the wider economy than many of their FTSE 100 index peers. As such, they may offer attractive yields today. They may also have the potential to deliver rising dividends in the coming years.Long-term income opportunitiesOver the long term, many FTSE 100 companies are likely to return to paying generous dividends to their shareholders. In the short run, a large number of FTSE 100 businesses appear to have the financial strength required to survive what is a challenging economic period. The world economy has always recovered from its various recessions to post positive GDP growth. So a return to more favourable trading conditions that allows dividends to be paid seems likely.As such, the FTSE 100 could offer greater scope to generate a generous passive income than a Cash ISA over the coming years. Low interest rates look set to remain in place for many years. That’s because the Bank of England is likely to seek to support the economy’s performance for as long as possible. This may mean Cash ISAs fail to offer an income return that keeps pace with inflation. The end result could be that your spending power declines over the long run.DiversificationAt the present time it’s difficult to know which FTSE 100 sectors and which geographical regions will be most affected by coronavirus. Some industries may return to normal faster than others. And those may also be able to pay attractive dividends sooner.Therefore, it’s logical to purchase a diverse range of income shares at the present time. Their low valuations could mean that they also deliver strong capital growth to complement their long-term passive income potential.While the short term may be challenging for income investors, the FTSE 100’s low price level could present buying opportunities that yield impressive returns in the coming years. Our 6 ‘Best Buys Now’ Shares Forget Cash ISAs. I’d buy cheap FTSE 100 dividend stocks today to make a passive income 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. Peter Stephens | Thursday, 7th May, 2020 center_img 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. Peter Stephens 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. Image source: Getty Images. “This Stock Could Be Like Buying Amazon in 1997” 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 Peter Stephenslast_img read more