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3 FTSE 100 dividend shares to contemplate shopping for whereas they’re on sale

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The previous few weeks haven’t been good for traders’ collective blood stress. However the market mayhem wrought by President Trump’s on once more, off once more method to tariffs has left a few of our greatest corporations buying and selling on decrease valuations and providing pretty revenue streams, not less than on paper. Accordingly, listed here are three dividend shares to contemplate shopping for at the moment as a part of a diversified portfolio.

Stonking yield!

Housebuilder Taylor Wimpey‘s (LSE: TW) share price hasn’t been immune from the sell-off. Latest volatility has left it down 13% for 2025 up to now.

Nonetheless, the inventory now adjustments arms at a price-to-earnings (P/E) ratio of 12. That’s under the typical valuation within the FTSE 100. The dividend yield additionally sits at a monster 9.2%.

So, what’s to not like? Properly, that sensible yield isn’t anticipated to be coated by revenue in 2025. Till the housing market will get it mojo again, Taylor Wimpey might must faucet its money reserves to make up the distinction. That may solely go on for thus lengthy. Concerningly, the corporate not too long ago posted a 32% fall in annual pre-tax revenue to £320m — far worse than the market was anticipating.

Nonetheless, a larger-than-expected drop in rates of interest by the Financial institution of England in an effort to assist companies may result in extra property transactions going by way of.

Within the meantime, the order e book stood at nearly £2.3bn in February. That’s up on the £1.95bn a yr earlier.

Down…however not out

Oil large BP (LSE: BP) additionally appears an fascinating proposition.

Granted, this might sound an odd decide. The price of ‘black gold’ is down 15% year-to-date with analysts predicting that weaker international financial development may cut back demand for gasoline at a time when provide is already anticipated to rise. Supporting this, Goldman Sachs believes Brent Crude will drop to $58 a barrel in 2026. That’s not best for debt-laden BP.

Nonetheless, I feel that is now priced in. The shares are down 14% in 2025 and historical past exhibits that purchasing when the chips are down is doubtlessly very profitable. When demand fell throughout Covid-19, for instance, the inventory fell under 200p. In early 2023, it had bounced to 560p.

A forecast 7.5% yield — double what an investor would get by monitoring the FTSE 100 index — could possibly be thought of satisfactory compensation for staying affected person.

Inexperienced power play

A 3rd FTSE 100 inventory that arguably screams ‘value’ proper now’s mega-miner Rio Tinto (LSE: RIO). A P/E of lower than 9 may show to be a steal in time if/when confidence returns. Within the meantime, the shares yield 6.6%.

After all, there’s no free lunch right here. Dangers with Rio Tinto embrace the inevitable volatility in commodity costs. The agency has additionally confronted accusations of office misconduct and environmental harm.

Alternatively, I’d say the worldwide shift in the direction of renewable power appears nailed on, even when the tempo could also be slower than beforehand anticipated. Because it’s one of many world’s largest producers of iron ore, copper and aluminium, Rio could possibly be quids in. As an indication of issues to come back, it was not too long ago introduced that the corporate would provide 70% of the iron ore wanted for a brand new hydrogen-based steelmaking plant in Austria.

A strong stability sheet additionally makes a dividend minimize look unlikely for now.

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