Look up anything

Look up anything

Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

back to top

3 FTSE 100 dividend shares to contemplate shopping for whereas they’re on sale

Related Article

Picture supply: Getty Pictures

The previous few weeks haven’t been good for traders’ collective blood stress. However the market mayhem wrought by President Trump’s on once more, off once more method to tariffs has left a few of our greatest corporations buying and selling on decrease valuations and providing pretty revenue streams, not less than on paper. Accordingly, listed here are three dividend shares to contemplate shopping for at the moment as a part of a diversified portfolio.

Stonking yield!

Housebuilder Taylor Wimpey‘s (LSE: TW) share price hasn’t been immune from the sell-off. Latest volatility has left it down 13% for 2025 up to now.

Nonetheless, the inventory now adjustments arms at a price-to-earnings (P/E) ratio of 12. That’s under the typical valuation within the FTSE 100. The dividend yield additionally sits at a monster 9.2%.

So, what’s to not like? Properly, that sensible yield isn’t anticipated to be coated by revenue in 2025. Till the housing market will get it mojo again, Taylor Wimpey might must faucet its money reserves to make up the distinction. That may solely go on for thus lengthy. Concerningly, the corporate not too long ago posted a 32% fall in annual pre-tax revenue to £320m — far worse than the market was anticipating.

Nonetheless, a larger-than-expected drop in rates of interest by the Financial institution of England in an effort to assist companies may result in extra property transactions going by way of.

Within the meantime, the order e book stood at nearly £2.3bn in February. That’s up on the £1.95bn a yr earlier.

Down…however not out

Oil large BP (LSE: BP) additionally appears an fascinating proposition.

Granted, this might sound an odd decide. The price of ‘black gold’ is down 15% year-to-date with analysts predicting that weaker international financial development may cut back demand for gasoline at a time when provide is already anticipated to rise. Supporting this, Goldman Sachs believes Brent Crude will drop to $58 a barrel in 2026. That’s not best for debt-laden BP.

Nonetheless, I feel that is now priced in. The shares are down 14% in 2025 and historical past exhibits that purchasing when the chips are down is doubtlessly very profitable. When demand fell throughout Covid-19, for instance, the inventory fell under 200p. In early 2023, it had bounced to 560p.

A forecast 7.5% yield — double what an investor would get by monitoring the FTSE 100 index — could possibly be thought of satisfactory compensation for staying affected person.

Inexperienced power play

A 3rd FTSE 100 inventory that arguably screams ‘value’ proper now’s mega-miner Rio Tinto (LSE: RIO). A P/E of lower than 9 may show to be a steal in time if/when confidence returns. Within the meantime, the shares yield 6.6%.

After all, there’s no free lunch right here. Dangers with Rio Tinto embrace the inevitable volatility in commodity costs. The agency has additionally confronted accusations of office misconduct and environmental harm.

Alternatively, I’d say the worldwide shift in the direction of renewable power appears nailed on, even when the tempo could also be slower than beforehand anticipated. Because it’s one of many world’s largest producers of iron ore, copper and aluminium, Rio could possibly be quids in. As an indication of issues to come back, it was not too long ago introduced that the corporate would provide 70% of the iron ore wanted for a brand new hydrogen-based steelmaking plant in Austria.

A strong stability sheet additionally makes a dividend minimize look unlikely for now.

Related Article