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.

| 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.

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

sdf

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.

Should you invest £1,000 in ITV right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if ITV made the list?

See the 6 stocks

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.

More on Investing Articles

UK financial background: share prices and stock graph overlaid on an image of the Union Jack
Investing Articles

2 FTSE shares taking on US tech giants — and quietly gaining ground

US tech stocks dominate headlines, but two UK tech firms are proving that FTSE shares can deliver strong growth, reliable…

Read more »

Mother At Home Getting Son Wearing Uniform Ready For First Day Of School
Investing Articles

Worried about the future? Here’s how to try and give your kid a £28,000 second income

The future is an unknown, and that scares many of us. Dr James Fox explains how we can try and…

Read more »

Array of piggy banks in saturated colours on high colour contrast background
Growth Shares

Here’s what analysts expect for the Tesco share price in the coming year

Jon Smith runs through the outlook for the Tesco share price using both his own opinion (and research) and that…

Read more »

Night Takeoff Of The American Space Shuttle
Investing Articles

This ex-penny stock jumped 16% today! Should I buy it for my ISA?

Our writer revisits a small-cap UK stock that he passed up on last year for his Stocks and Shares ISA.…

Read more »

Two female adult friends walking through the city streets at Christmas. They are talking and smiling as they do some Christmas shopping.
Investing Articles

How much do you need in an ISA to target a £2,500 monthly income?

Harvey Jones thinks FTSE 100 shares are a brilliant way to generate a long-term second income stream, and names a…

Read more »

Businessman hand stacking money coins with virtual percentage icons
Investing Articles

These ‘boring’ FTSE 100 dividend stocks just hit 52-week highs!

Who needs to be part of the AI-frenzy when certain dividend stocks are making an absolute packet for more conservative…

Read more »

Businesswoman calculating finances in an office
Investing Articles

This FTSE 100 stock is forecast to beat Rolls-Royce in the coming year — and it’s only £1!

Rolls-Royce has been the FTSE 100 star of 2025, but analysts think this £1 homebuilder could deliver over three times…

Read more »

Mature black woman at home texting on her cell phone while sitting on the couch
Growth Shares

Down 86% over five years, this FTSE stock could be nearing the bottom

Jon Smith points out a FTSE share that has been beaten up in recent years but could start to show…

Read more »