Have £4k to spend on your ISA? 3 FTSE 100 dividend stocks that could surge in 2020

Businessman leading a chart upwards

In worrying times like these its good to have exposure to some classic safe-haven assets. Holding gold and gold-producing stocks is one great idea as a hedge against the multitude of geopolitical and macroeconomic issues heading into 2020, but of course its not the only way to play volatile markets.

With this in mind I reckon BAE Systems (LSE: BA) is a share thats in good shape to rise next year. Its already up 17% in 2019 versus the 8% rise in the broader FTSE 100, paying testament to the defence sectors reputation as a lifeboat in troubled times.

Humans simply cant resist waging war among themselves, which gives this particular business, exceptional earnings visibility. BAE Systems provides a wide variety of industry-leading tech. And whats more, fresh military action in Syria and ongoing tension between the US and Iran sagas that have led President Trump to suggest possible intervention by US armed forces could in particular cause a spike in the companys share price next year.

A modest forward price-to-earnings ratio of 11 times for 2020, along with a bulky corresponding 4.5% dividend yield certainly gives the weapon-builder plenty more scope to rise.

Drink it in

Diageo (LSE: DGE) is another blue chip thats outperformed the wider Footsie so far this year. The beverages behemoths share price is up 12% since the turn of January.

Like BAE Systems, this particular business is also a safe-haven in troubled times. It doesnt matter, broadly spe....

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