3 top FTSE 100 dividend shares with 8%+ yields I’m buying in May

These three FTSE 100 dividend shares could be a great way to bolster my income and further diversify my portfolio. What’s more, they all have attractive dividend yields.

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

British bank notes and coins

Image source: Getty Images

The FTSE 100 is full of the biggest and most consistent companies. I find it useful to scour the index to find the most lucrative income opportunities. While I enjoy looking for growth stocks, FTSE 100 dividend shares can further diversify my long-term portfolio. I’ve found three businesses with dividend yields of over 8%. I think they could be great additions to my current holdings in May. Let’s see why.

Dividend share #1: A FTSE 100 homebuilder

The first dividend share I’m interested in is Persimmon (LSE:PSN), a UK-based homebuilder, running three house building brands. It currently trades at 2,112p.

Inflation Is Coming

Inflation is out of control, and people are running scared. But right now there’s one thing we believe Investors should avoid doing at all costs… and that’s doing nothing. That’s why we’ve put together a special report that uncovers 3 of our top UK and US share ideas to try and best hedge against inflation… and better still, we’re giving it away completely FREE today!

Click here to claim your copy now!

Most recently, it carried a dividend yield of 8.2%, or 125p per share. As a potential investor, the possibility of this level of passive income is very appealing.

What’s more, for the three months to 31 March 2021, the company was trading in line with expectations. It had a forward order book worth around £2.8bn. For the year, group revenue surged 8.4% to £3.6bn, as demand for newbuild homes increased.

With interest rates rising, however, I wonder if this might deter potential homeowners from seeking mortgages. This may have a knock-on effect on Persimmon’s operations.

Dividend share #2: Rio Tinto

Secondly, Rio Tinto (LSE:RIO) is a producer of commodities like copper and iron ore. It most recently had a dividend yield of 12.9%, or $10.40 per share. It currently trades at 5,664p.

The company is currently benefiting from higher prices in aluminium, copper, and iron ore. Furthermore, it reported a profit before tax of $30.8bn in 2021, more than double the profit before tax in 2020.

Despite this, iron ore shipments were down for the three months to 31 March and production had fallen 6.2% year on year. This is mainly caused by supply chain problems and labour shortages. I see these problems as short-term in nature and they could subside over a longer period of time.

Dividend share #3: Antofagasta

Finally, Antofagasta (LSE:ANTO) is a metals producer based in Chile. It specialises in copper. It currently trades at 1,516p.

Most recently, it had a dividend yield of 8.5%, equivalent to $1.43 per share.

Its profits before tax grew markedly between 2020 and 2021, from $1.4bn to $3.4bn. Like Rio Tinto, it is also benefiting from higher commodity prices as inflation grips the world.

It recently reiterated its 2022 copper guidance of between 660,000 and 690,000 tonnes. Despite this, its overall copper production for the three months to 31 March declined by about 22%, year on year. Much of the is attributable to a drought in part of Chile. I would like to see these production figures improve in the near future.

Overall, these three companies have solid foundations and are paying healthy dividends to shareholders. To increase my passive income, I will be buying shares in all three firms in May to balance this way of building wealth with the growth stocks I already hold.

FREE REPORT: Why this £5 stock could be set to surge

Are you on the lookout for UK growth stocks?

If so, get this FREE no-strings report now.

While it’s available: you'll discover what we think is a top growth stock for the decade ahead.

And the performance of this company really is stunning.

In 2019, it returned £150million to shareholders through buybacks and dividends.

We believe its financial position is about as solid as anything we’ve seen.

  • Since 2016, annual revenues increased 31%
  • In March 2020, one of its senior directors LOADED UP on 25,000 shares – a position worth £90,259
  • Operating cash flow is up 47%. (Even its operating margins are rising every year!)

Quite simply, we believe it’s a fantastic Foolish growth pick.

What’s more, it deserves your attention today.

So please don’t wait another moment.

Get the full details on this £5 stock now – while your report is free.

Andrew Woods 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.

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 considered, so you should consider taking independent financial advice.

More on Investing Articles

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

How I’d apply the Warren Buffett method to buying shares

Learning from billionaire investor Warren Buffett, our writer explains his own approach to investing in shares for his portfolio.

Read more »

pensive bearded business man sitting on chair looking out of the window
Investing Articles

This dividend share yields under 1% — but I’d still buy it

This dividend share has a low yield. So why would our writer consider adding it to his income portfolio?

Read more »

Young lady working from home office during coronavirus pandemic.
Investing Articles

Looking for a good share to buy? Here’s how I do it

Here are two approaches our writer uses when hunting for a good share to buy for his portfolio to aim…

Read more »

man in shirt using computer and smiling while working in the office
Investing Articles

One cheap FTSE 100 share I’d buy for a new bull market

This FTSE 100 share is unloved and starting to look seriously cheap, says Roland Head.

Read more »

Young brown woman delighted with what she sees on her screen
Investing Articles

How I’d invest £500 in UK shares in 2022

Investing a small amount of capital in UK shares can result in high commission costs. Zaven Boyrazian explains how to…

Read more »

Black woman using loudspeaker to be heard
Investing Articles

2 battered FTSE dividend stocks to buy in July!

I'm still searching the FTSE 100 for the best bargains to buy. I think these two big dividend shares are…

Read more »

Woman pulling baffled face
Investing Articles

Can I trust Lloyds’ 6.1% dividend yield?

The Lloyds' share price has sunk in 2022, causing the bank's dividend yield to leap. But can I really trust…

Read more »

Young mixed-race woman looking out of the window with a look of consternation on her face
Investing Articles

3 top stocks to buy before the market rebounds

Edward Sheldon highlights three beaten-up stocks he'd buy before global stock markets stage a recovery from their 2022 declines.

Read more »