7.5% dividend yields! 4 FTSE 100 dividend shares to buy

These FTSE 100 shares all offer dividend yields above the market average. Here’s why I think they’re some of the best UK dividend stocks that I could buy.

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Today I’m looking at some of the best dividend stocks money can buy. Here are some income heroes from the FTSE 100 I’d happily buy for my own stocks portfolio.

Motoring along nicely

Spiking claims costs are always a danger to UK insurance shares. But I’m confident that car insurance colossus Admiral Group can still deliver monster investor returns now and in the years ahead. And at the moment this FTSE 100 share carries an enormous 7.5% dividend yield. Analysts at Berenberg note that insurance claims for serious personal injury have been coming down for years now. Meanwhile Admiral continues to impressively grow its share of the motor and home insurance segments both in the UK and abroad. Total customer numbers at the company soared 10% in 2020 as a result, to 7.7m.

One of my ISA buys

I already own FTSE 100 housebuilder Barratt Developments in my Stocks and Shares ISA. And I have no intention of selling it any time soon. This is because the same factors that have propelled property prices through the roof over the past decade remain very much in place today. Interest rates remain extremely low and competition among lenders is intense, thus helping homebuyers get on the property ladder. Meanwhile massive government help remains in place through Help to Buy ISAs and equity loans. I think Barratt’s a top stock to buy despite the threat that growing building product shortages poses to construction rates. Oh, and the Footsie firm carries a chunky 4% forward dividend yield today.

Should you invest £1,000 in Celebrus Technologies Plc right now?

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A person holding onto a fan of twenty pound notes

Another top dividend share

ITV is another big-yielding FTSE 100 share I’d buy today. I wouldn’t just buy it because advertising budgets are bouncing back strongly at the moment. I’d buy it because I like the progress the broadcaster is making in the fast-growing video on demand segment (the number of ITV Hub subscribers rose 6% in 2020 to 33m as a consequence of platform and content improvements). I also like the huge investment ITV is making to turn its ITV Studios division (the maker of hits like Love Island and The Chase) into a global programme-making heavyweight. I think it’s a great buy despite the threat posed by the US streaming giants like Netflix and Amazon. ITV’s forward dividend yield sits at 4%.

A FTSE 100 telecoms hero

Telecoms titan Vodafone Group has long been one of the best cash generators on the FTSE 100. This has allowed it to pay above-average dividends to its investors. City brokers are expecting another annual payout of €0.09 per share this fiscal year, too, resulting in a 6.5% dividend yield. This makes the company a great buy today, in my opinion, as does its drive to roll out its fixed-line broadband and 5G services across Europe. I also like the company’s exposure to fast-growing markets in Africa, though swiftly-rising competition in these developing regions could potentially hamper profits generation there.


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 owns shares of Barratt Developments. The Motley Fool UK owns shares of and has recommended Amazon and Netflix. The Motley Fool UK has recommended Admiral Group and ITV and has recommended the following options: long January 2022 $1,920 calls on Amazon and short January 2022 $1,940 calls on Amazon. 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.

Like buying £1 for 51p

This seems ridiculous, but we almost never see shares looking this cheap. Yet this recent ‘Best Buy Now’ has a price/book ratio of 0.51. In plain English, this means that investors effectively get in on a business that holds £1 of assets for every 51p they invest!

Of course, this is the stock market where money is always at risk — these valuations can change and there are no guarantees. But some risks are a LOT more interesting than others, and at The Motley Fool we believe this company is amongst them.

What’s more, it currently boasts a stellar dividend yield of around 8.5%, and right now it’s possible for investors to jump aboard at near-historic lows. Want to get the name for yourself?

See the full investment case

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