Picture supply: Getty Pictures
The previous couple of weeks haven’t been good for buyers’ collective blood strain. However the market mayhem wrought by President Trump’s on once more, off once more strategy to tariffs has left a few of our largest firms buying and selling on decrease valuations and providing pretty revenue streams, at the least on paper. Accordingly, listed below are three dividend shares to contemplate shopping for at present as a part of a diversified portfolio.
Stonking yield!
Housebuilder Taylor Wimpey‘s (LSE: TW) share value hasn’t been immune from the sell-off. Current volatility has left it down 13% for 2025 to date.
Nonetheless, the inventory now modifications palms at a price-to-earnings (P/E) ratio of 12. That’s beneath the common valuation within the FTSE 100. The dividend yield additionally sits at a monster 9.2%.
So, what’s to not like? Nicely, that good yield isn’t anticipated to be lined by revenue in 2025. Till the housing market will get it mojo again, Taylor Wimpey could have to faucet its money reserves to make up the distinction. That may solely go on for therefore lengthy. Concerningly, the corporate just lately posted a 32% fall in annual pre-tax revenue to £320m — far worse than the market was anticipating.
Nevertheless, a larger-than-expected drop in rates of interest by the Financial institution of England in an effort to help companies might result in extra property transactions going by means 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 big BP (LSE: BP) additionally seems to be an attention-grabbing proposition.
Granted, this may appear an odd choose. The worth of ‘black gold’ is down 15% year-to-date with analysts predicting that weaker world financial progress might 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 excellent for debt-laden BP.
Nevertheless, 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 probably very profitable. When demand fell throughout Covid-19, for instance, the inventory fell beneath 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 vitality play
A 3rd FTSE 100 inventory that arguably screams ‘worth’ proper now’s mega-miner Rio Tinto (LSE: RIO). A P/E of lower than 9 might show to be a steal in time if/when confidence returns. Within the meantime, the shares yield 6.6%.
In fact, 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 direction of renewable vitality seems to be 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 return, it was just lately 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 lower look unlikely for now.
