2 much-loved FTSE 100 dividend stocks! Should I buy them in April?

I am looking for the best FTSE 100 dividend shares to buy before the Stocks and Shares ISA deadline this month. Should I add this popular income stock to my portfolio?

Diageo

Giants drink Diageo (LSE:DGE) doesn’t offer the biggest dividend yield. For the current financial year, it yields 2.3%

This is some distance below the average of 3.7% for FTSE 100 shares. But despite this, I still think this is the top share to buy for long-term passive income. In fact, these are blue-chip stocks I already have in my ISA.

You see, Diageo has an impressive record of dividend growth that few others can match. It has raised annual shareholder payouts every year for more than 20 years. Dividend increases are important because they protect investors’ wealth from damage from inflation.

It has a strong track record of high profitability, which gives it the means to consistently raise its dividend. This is thanks to the defensive nature of the operation. Demand for alcoholic beverages remains stable at all points in the economic cycle.

This power is also down to the popularity of such drinks Captain Morgan rum, Guinness brave and Smirnoff vodka. The huge amount that Diageo spends on marketing gives the product tremendous brand power, making it an important purchase for many shoppers.

Diageo is a stock I’d rather not sell. But even rising teetotalism can cause income growth to decline later.

Tesco

Like Diageo, Tesco (LSE:TSCO) has formidable brand power. This is greatly helped by the hugely popular Clubcard loyalty scheme. On top of this, the FTSE company also has the best online wholesale operation in the business.

This is a factor that has strengthened its position as the UK’s largest retailer and generated solid profits. But I’m not sure. This is because the speed of competition between supermarkets continues to grow.

Tesco’s market share continues to grow as customers flock to the Aldi and Lidl price chains. The latest Kantar Worldpanel data showed market share fell in the 12 weeks to March 19, to 26.9%. This is down by more than half a percentage point from the end of 2022.

The pressure appears to be intensifying as German discounters rapidly expand their store estates. Heavy investment by competitors in their own online channels also poses a significant threat.

What’s more, Tesco’s appeal with consumers could be damaged by changes to Clubcard. Starting June 14, shoppers can double the points they earn when spending with rewards partners. At that moment, the customer can triple the value of the points.

Clubcard has helped businesses fight value chain threats better than traditional rivals like Sainsbury’s. A change here could damage a retailer’s brand with customers running out of cash and rushing out to cheaper retailers.

Tesco’s forward dividend yield of 4.1% is very attractive. But I still prefer to buy more FTSE shares for income. I think retailers may struggle to grow dividends over the next decade as competition increases.