3 high-yield FTSE 100 shares that could be too cheap to miss!

Stock market volatility has turbocharged the value on top UK shares. Here are three excellent high-yield stocks on my radar today.

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The FTSE 100’s recent slump provides an excellent buying opportunity for value investors. Many top-quality stocks have been hastily sold off in the panic. This means many UK blue-chips trade on rock-bottom earnings multiples and carry sky-high dividend yields.

Here are three FTSE 100 bargains I’ll be looking to buy when I have spare cash to invest.

Anglo American

Forward P/E ratio: 8.3 times; dividend yield: 5%

Diversified miner Anglo American (LSE:AAL) has slumped this year as commodity prices have fallen. Metal values soared following Russia’s invasion of Ukraine last year. But they have since tumbled due to growing concerns over the global economy.

I believe Anglo American’s 33% share price decline is excessive. I don’t think a current price of £21.90 reflects the mega miner’s excellent long-term profits outlook.

Make no mistake: commodities demand is set to grow strongly over the next decade. A rapidly-rising world population, along with soaring personal wealth levels in developing markets, will all supercharge raw materials consumption. Themes like decarbonisation and urbanisation especially mean resources like copper, nickel, and iron ore will all be in high demand.

It’s also worth remembering that ongoing monetary support from China’s central bank could prevent commodities demand falling as sharply as the market fears, supporting profits at businesses like Anglo American.

HSBC Holdings

Forward P/E ratio: 6.5 times; dividend yield: 7.6%

Forget Lloyds, NatWest, and Barclays. I think HSBC Holdings (LSE:HSBA) is the hottest FTSE bank for investors to buy. I don’t believe a current price of 608p per share reflects the huge growth opportunities in its emerging markets.

The banking colossus is pivoting ever-closer to Asia. In fact it’s selling assets in its traditional territories to designate more cash to growing in China and the surrounding region. It has earmaked $6bn to expand its presence in wealth management and commercial banking through to 2026.

Soaring disposable incomes are driving demand for financial services in Asia through the roof. HSBC is a great stock to buy to capitalise on this, even though rising loan impairments could hamper earnings in the near term.

Aviva

Forward P/E ratio: 7 times; dividend yield: 8.8%

At 382p, Aviva’s (LSE:AV.) low share price reflects fears that demand for its protection and retirement products could fall as the economy cools. As a long-term investor I think this represents an attractive level at which to open a position.

Britain’s rapidly ageing population provides an enormous sales opportunity for the FTSE 100 company. While it will have to paddle hard to win business in a highly competitive marketplace, the huge amount it’s investing in digital could help give it the edge.

I also like Aviva especially because of its exceptional cash generation. This gives it enormous financial firepower it can deploy to grow earnings. It also means the business has plenty of capital to pay big dividends and launch additional share buybacks (it completed its latest repurchase programme, worth £300m, in June).

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.

HSBC Holdings is an advertising partner of The Ascent, a Motley Fool company. Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays Plc, HSBC Holdings, and Lloyds Banking Group Plc. 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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