7.4%+ dividend yields! 2 FTSE 100 dividend stocks I’d hold for 10 years

I think these dirt-cheap FTSE 100 dividend stocks could be great buys for the next 10 years. Here’s why I’d snap them up for my portfolio today.

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I’m searching for the best FTSE 100 dividend stocks to buy for my portfolio in May. Here are two which offer dividend yields far above the 3.5% FTSE 100 average. I think they could make me some terrific shareholder returns over the next decade at least.

ITV (7.4% dividend yield)

As consumer spending comes under pressure, I think now could be a good time to buy ITV (LSE: ITV) shares.

Competition from streaming companies remains a significant danger for the FTSE 100 broadcaster. However, subscriptions for Netflix, Amazon and other paid-for services are slumping (down 1.5m in the first quarter) in Britain as people tighten their belts. This bodes well for the free-to-air media giant.

I believe the outlook for ITV remains rosy for the next decade too. The business has invested heavily in its own ITV Hub platform to capitalise on the streamlining phenomenon. And this is causing viewing figures to rocket (streaming viewing hours jumped 22% year-on-year in 2021).

I like the ambitious plans ITV has to turbocharge its streaming operations too, with the launch of its new ITVX platform later this year. The broadcaster expects these measures to double digital revenues by 2026, to £750m.

Finally, I like the rapid expansion that ITV continues to pursue for its ITV Studios arm. The production division is now a global production heavyweight and its shows like Love Island and The Chase sold all over the globe. The business remains dedicated to growing the unit and last year launched new production arms in Spain and Germany to help grow its international footprint still further.

Today, ITV trades on a price-to-earnings (P/E) multiple of just 5.3 times for 2022. It’s a figure I don’t believe fully reflects the FTSE 100 firm’s excellent earnings potential in the near term and beyond.

Rio Tinto (10.6% dividend yield)

I’m also thinking of buying Rio Tinto (LSE: RIO) shares to make money from the predicted commodities ‘supercycle.’

Demand for raw materials is tipped to surge over the next decade. Trends like the growth of green energy, rapid urbanisation in emerging markets, and robust infrastructure spending across the globe are expected to supercharge consumption mining commodities.

This bodes well for diversified miners like Rio Tinto. This FTSE 100 produces copper, iron ore and aluminium among other things, metals that will provide the backbone for those aforementioned trends.

The problem for Rio Tinto is that revenues could slump if commodity prices weaken. This could happen, for instance, if the cost of living crisis continues and the global economy sinks.

Still, it’s my opinion that this danger is baked into the mining giant’s rock-bottom share price. Rio Tinto trades on a forward P/E ratio of just 6.5 times. This reading is well inside the widely-regarded value bargain watermark of 10 times and below.

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.

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Amazon and ITV. 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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