A great deal of FTSE 100 revenue shares look extremely tempting after current inventory market volatility.

Two specifically look large bargains. Their share costs have plunged, the dividends have shot up and their valuations have plummeted. For a contrarian investor like me, this ought to be a present. However not each reward is price unwrapping.

The Schroders share price can’t cease falling

Schroders (LSE: SDR) has an impeccable pedigree. It’s been managing cash because the Napoleonic Wars and nonetheless seems the half, with belongings underneath administration nudging £779bn. Its shares at present yield a meaty 6.86% and commerce at just below 12 instances earnings. What’s to not like?

The shares have fallen 15% within the final yr however this isn’t simply down to Donald Trump’s commerce tariffs. They’re down 40% over three years and now commerce close to 10-year lows. This implies its issues have deep roots.

Schroders has been caught between two worlds: too costly to compete with index trackers and ETFs, too old-school to rival personal fairness.

Its 2024 outcomes had been respectable. Statutory revenue earlier than tax climbed 14% to £558.1m, and internet new inflows got here from high-margin areas like wealth administration.

However working revenue nonetheless fell 3% attributable to decrease charges and rising prices. A £150m cost-saving plan is underneath method, with new chief govt Richard Oldfield promising a metamorphosis and extra focus. Bold targets embrace lowering its cost-to-income ratio and profitable £20bn of contemporary capital for its alternate options arm.

Can he ship? The jury is out. The agency hasn’t discovered a compelling fashionable id, and whereas the dividend is being held regular, progress seems sluggish and fragile. 

If Schroders does handle a turnaround, it might make a cracking restoration story. However after so many false dawns, I’m cautious.

WPP presents revenue however with strings

Media big WPP (LSE: WPP) additionally seems low cost, buying and selling at simply over 10 instances earnings with a beneficiant 7.34% yield. The shares have plunged 30% during the last yr however once more, that doesn’t make them an unmissable cut price.

The promoting big has been battling structural modifications ever since inspirational driving power Martin Sorrell left underneath a cloud in 2018. Purchasers are spending much less, markets are cautious and digital rivals have eroded its once-dominant place.

Full-year figures in February had been blended at finest. Reported income fell 0.7%, whereas like-for-like income dropped throughout key markets together with the UK and China. 

Development from media arm GroupM was encouraging, however efficiency throughout its built-in companies weakened. As with Schroders, elements of the enterprise are modernising, others danger being left behind.

Once more, WPP is taking motion. It’s investing £300m in its WPP Open platform to push deeper into AI and information, whereas value financial savings have lifted margins.

It’s not all gloom. Its 2024 working revenue rose almost 150%, largely attributable to one-off disposals, whereas internet debt fell and money stream improved.

Nonetheless, the board expects revenues to stay flat and even decline once more in 2025. The dividend could also be secure for now, however WPP wants a clearer path. And a stronger world financial system.

Like Schroders, WPP has regarded tempting for too lengthy, with out delivering on its potential. I’ll resist these excessive yields and low P/Es. They’ve each nonetheless obtained a protracted option to go.