Traders are spoilt for alternative in the case of FTSE 100 dividend shares. Although the blue-chip index climbed nearly 1.5% in February, there are nonetheless bargains available. 

Listed below are three that an investor may take into account including to their portfolio over the following month. All yield greater than 5%. And two are actually low cost.

Schroders shares have struggled

Let’s begin with the costliest, funding supervisor Schroders (LSE: SDR). Its shares have had a torrid time, and though they’ve picked up in current weeks, they’re nonetheless down 4.5% over one 12 months and 26% over 5.

I’d have anticipated them to be actually low cost consequently, however the price-to-earnings ratio of 15.1 is according to the FTSE 100 common. Earnings have been bumpy. Schroders additionally suffered £2.3bn of outflows in Q3, though property below administration climbed to £663.8bn.

Schroders has been hit by risky markets, most not too long ago triggered by Trump’s commerce tariff threats. As an energetic fund supervisor, Schroders additionally faces the menace from hovering demand for exchange-traded funds (ETFs). But with a excessive trailing yield of 5.78%, earnings seekers could also be dazzled.

Dealer RBC Capital Markets reckons Schroders’ new CEO can speed up progress. Time will inform. Whereas traders wait, at the very least they’ve that earnings.

Rio Tinto has a superb yield

The mining sector has had a bumpy few years, as demand from China has plunged. Regardless of some indicators of progress, I don’t anticipate China to instantly fly.

The Rio Tinto (LSE: RIO) share price is down 6% over 12 months, however now appears to be like an actual cut price with a P/E ratio of simply 9.1.

Once more, the worldwide slowdown and Trump tariffs are hitting sentiment. On 20 February, Rio Tinto posted its weakest earnings in half a decade. They dropped from $11.76bn in full-year 2023 to $10.87bn in 2024, largely on account of decrease iron ore costs. Web debt was greater than predicted at $5.5bn. 

It’s been a lean few years for Rio Tinto traders. Throughout a lot of that point, the P/E was low with out attracting cut price seekers. Nevertheless, it operates in a cyclical sector that ought to swing again into favour sooner or later. Traders may have endurance although. Whereas they wait, Rio’s bumper 6.61% yield could compensate.

The HSBC share price is flying

In distinction to those two strugglers, Asia-focused financial institution HSBC Holdings (LSE: HSBA) has been bombing it. The shares have rocketed 50% within the final 12 months, and 72% over 5 years.

It is a pattern throughout the FTSE banks. And like its rivals, HSBC nonetheless appears to be like properly valued buying and selling at simply 9.2 occasions earnings. Traders can be tempted by its 5.7% trailing yield and an additional $2bn in share buybacks.

HSBC has publicity to the struggling Chinese language economic system, whereas Trump tariffs are a priority. Falling rates of interest may squeeze margins too.

Of the three, I take into account HSBC probably the most promising. Although it shares may gradual sooner or later after a robust run. Rio Tinto may spring a shock, when world sentiment lastly picks up. As for Schroders? It’s been struggling for thus lengthy I’m cautious of calling the underside. Nice yield although. I’d solely take into account any of those dividend shares with a minimal five-year view. These are risky occasions.