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10% dividend yields! 2 of the best FTSE 100 stocks to buy

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It seems as if copper demand could rise significantly over the next decade. This provides plenty of opportunity for many FTSE 100 shares. The whirlwind rise of electric vehicles (EVs), and the need for huge investment in the infrastructure to get these vehicles moving, is one reason. Massive renewable energy building projects across the globe is another. And then you have fast-rising personal income levels in emerging regions that’s driving demand for consumer electronics and white goods.

This is a theme that could make BHP Group (LSE: BHP) a top FTSE 100 share for me to buy this decade. The mining giant is the second-biggest copper producer on the planet. And it’s splashing the cash to create the next generation of red-metal-producing assets to satisfy soaring demand for the commodity. This includes developing the vast Resolution Copper project in Arizona with Rio Tinto, which is considered one of the best untapped copper resources anywhere.

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10% dividend yields!

Today BHP carries a mighty 10% dividend yield for the current financial year (to June 2022). This, however, isn’t the only thing that makes the company a top FTSE 100 value share to buy, I feel. City analysts think earnings will rocket 80% year-on-year. This means BHP trades on a forward price-to-earnings (P/E) ratio of 8 times. It’s a reading that sits well inside the widely-regarded bargain benchmark of 10 times and below.

A person holding onto a fan of twenty pound notes

These predictions of exceptional earnings growth could be blown off course by events in China. The Asian powerhouse consumes more than half of all the world’s copper. And recent data shows that the economy there is slowing sharply. Manufacturing PMI numbers in China slumped to just 50.1 in July, barely above the watermark that separates expansion from contraction.

That being said, I believe the risks of near-term forecasts are baked into BHP’s rock-bottom P/E ratio. This is why it’s a dividend stock I’m seriously thinking of buying right now.

Another FTSE 100 dividend share I’d buy

I think Aviva’s (LSE: AV) another FTSE 100 dividend share that’s too cheap to ignore right now. First off, it sports a gigantic 5.3% dividend yield for 2021. This is a reading that also smashes the broader Footsie forward average of 3.4%.

Aviva’s share price looks mighty cheap from an earnings perspective too. City brokers think profits will reverse 7% year-on-year in 2021. But this still leaves the insurance firm trading on a forward P/E ratio of just 9 times.

I really like the massive restructuring Aviva has pushed through in recent years. By hiving off most of its foreign operations, it’s become a much more efficient machine that can better focus on its core markets of the UK, Ireland and Canada. Moreover, its massive asset sales have also given it plenty of financial firepower with which it can continue to fund bumper shareholder payouts.

There’s some concern over whether Aviva’s much-reduced foreign footprint will seriously hit future earnings growth. However, at current prices I still think this FTSE 100 firm is a great UK share for me to buy today.

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Royston Wild 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.

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