8.5% and 9.5% dividend yields! 2 FTSE 100 stocks to buy today

The dividend yields at these brilliant blue-chips sit very close to double digits. I think they could be too good (and too cheap) to miss.

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I’ve long talked about the brilliant investment potential of the UK’s housebuilders. I own Barratt Developments (LSE: BDEV) and Taylor Wimpey incidentally, two FTSE 100 builders that are soaring on Monday.

In fact, all of London’s major housebuilders are shooting upwards today. They’ve leapt amid reports that they won’t need to contribute to a £4bn fund to help solve the cladding crisis.

The fund is focussed on improving the fire resistance of ‘orphan’ properties, where the owners cannot be traced. And it could save the housebuilders a fortune in repair costs.

8.5% dividend yields!

This is the latest in a string of positive updates for the housebuilders. Latest house price data from Nationwide last week showed the average property value in the UK rising at its fastest pace since 2004.

I’m thinking of increasing my holdings in Taylor Wimpey and Barratt on the back of these releases. This is despite the threat that rising interest rates may cause the housing market to cool.

And right now I’m looking at Barratt on account of its mighty dividend yields. The housebuilder boasts a figure of 7.1% for the financial year to June. The dial moves to a massive 8.5% for the following financial year too.

Today, Barratt also trades on a forward price-to-earnings (P/E) ratio of 6.9 times, giving it excellent all-round value for money.

Even bigger dividend yields

Glencore (LSE: GLEN) is another big-yielding FTSE 100 bargain I have my eye on today. The commodities giant trades on a P/E ratio of 5.6 times. And its dividend yield beats even that of Barratt. It sits at a mammoth 9.5% for 2022.

In case you’re unfamiliar, Glencore is one of the largest commodity traders on the planet. It also owns a wide spectrum of mining assets, from copper projects in Chile and Canadian nickel projects to iron ore resources in the Republic of Congo.

I think this UK share is packed with excellent long-term potential. Demand for its materials should balloon as infrastructure and housing construction heats up over the next decade. It can also expect demand for its copper, cobalt, nickel and zinc to rocket as electric vehicle sales pick up speed.

A FTSE 100 stock for the future

One fly in the ointment is that Glencore could suffer in the near term as the global economy cools. S&P Global data shows global manufacturing grew at its slowest pace for 18 months in March.

Glencore is a UK share that is highly sensitive to broader economic conditions. So potential investors need to remember the impact that resurgent Covid-19 cases in China and war in Ukraine could have on revenues if off-take of its commodities slides.

However, as someone who invests for the long term, I still think Glencore could prove a brilliant buy for me. And especially given the company’s ultra-low share price.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild owns Barratt Developments and Taylor Wimpey. 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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