8.4%+ dividend yields! 3 cheap FTSE 100 shares I’d buy right now
Okay, UK share markets have rebounded strongly after slumping as concerns over the Omicron coronavirus variant emerged. But it doesn’t mean there are no longer any brilliant bargains available for me to buy today.
There are plenty of top stocks on the FTSE 100 alone that are seriously attracting my attention right now.
For example, these three blue-chip beauties all offer the sort of exceptional all-round value that’s making me consider investing today. Each trades on a price-to-earnings (P/E) ratio either around or below the bargain-benchmark of 10 times for 2022.
What’s more, each of these FTSE 100 shares carries a gigantic dividend yield, north of 8.4%.
Riding the retirement boom
Low interest rates mean it’s difficult for UK savers and investors to get a decent return on their cash. This is playing into the hands of financial services businesses like M&G that provide the advice to help people overcome this problem.
I like this particular operator because of its excellent brand power, a quality that can’t be overstated when it comes to keeping people’s money safe.
I’m also thinking about buying M&G because its Pru retirement services division will put it in the box seat to exploit Britain’s rapidly-ageing population.
Government statistics suggest 24% of the population will be aged 65 and above by 2043. That compares with 19% in 2019. Today, this FTSE 100 stock offers a mammoth 8.9% dividend yield. I’d buy it even though the highly-regulated nature of its operations poses a constant threat to future profits.
Another FTSE 100 dividend hero
The possibility that inflation could continue rocketing in 2022 creates a layer of risk for housebuilders like Persimmon. Theoretically, it could prompt a tsunami of interest rate hikes by the Bank of England that affect homeowner affordability. But, for my money, I think overall trading conditions should remain supportive for the FTSE 100 housebuilder and its peers.
It’s my belief that even if interest rates do rise markedly, they will still remain below historic norms. Besides, the ultra-competitive mortgage market means that lenders will help offset this pressure with generous loan products.
Ongoing Help to Buy support for first-time buyers should also keep demand for Persimmon’s homes rising nicely. This share also carries an 8.4% dividend yield for 2022.
9.2% dividend yields!
I also think FTSE 100 mining giant BHP Group could be a top dividend stock for me to buy. That’s even though economic cooling in China and a possible property market collapse in the Far East threatens profits. In recent hours, real estate mammoth Evergrande missed key bond payments, raising chatter over a property crash still further.
But, as a long-term investor, there’s a lot I like about BHP. I think demand for its broad range of commodities could soar as infrastructure and housing investment steps up across the globe.
I also think profits could soar as the electric vehicle revolution supercharges demand for the copper it pulls from the ground. Today, BHP carries a mighty 9.2% forward dividend yield.
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5 Stocks For Trying To Build Wealth After 50
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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.