These 2 dividend shares are yielding at least 8.4%!

The most typical measure used to evaluate dividend shares is their yield. In the mean time (23 July), the 2 highest yielding shares on the FTSE 100 are WPP (LSE:WPP) and Taylor Wimpey (LSE:TW.).

However I feel every has a special story to inform.

Tough occasions

It’s been a torrid few months for inventive media company WPP. It lately issued a revenue warning advising that its 2025 like-for-like income (much less go by means of prices) is prone to be 3-5% decrease than in 2024.

It’s now the very best yielder on the FTSE 100. However it’s not due to a rise in its payout. In actual fact, its dividend has remained unchanged for the previous three monetary years. As an alternative, it’s due to a falling share worth. On the day of its revenue warning, its inventory plummeted almost 19%.

I think most buyers are actually anticipating a lower in its dividend.

An unsure future

Whether or not this occurs or not will depend on the way it copes with the present trade downturn. I’m positive world financial uncertainty is a significant purpose for the discount in promoting and advertising and marketing budgets. Discretionary spending is likely one of the first issues to come back below the highlight when occasions are powerful.

Nonetheless, it’s nonetheless unclear how synthetic intelligence (AI) is affecting this pattern. In 2024, WPP spent £250m on “AI experience, information functionality and cutting-edge know-how”.

However this know-how’s making it simpler for corporations to create their very own campaigns. The influence on WPP — and the trade during which it operates — isn’t but absolutely understood.

Nonetheless, the inventive large stays worthwhile with a worldwide attain. It has operations in over 100 nations and retains a powerful shopper base. And I’m positive its newly-appointed CEO, Cindy Rose, is aware of a factor or two about AI. She’s presently working for Microsoft.

Personally, with a lot uncertainty surrounding the sector, I don’t wish to take a stake in WPP.

Identical however completely different

Equally, Taylor Wimpey’s yield has been boosted by a falling share worth. However, in contrast to WPP, it’s anticipating a rise in revenue this 12 months.

It hopes to promote 10,400-10,800 houses (excluding joint ventures) in comparison with the 9,972 it accomplished in 2024.

Different indicators that the housing market may very well be on the flip embody an increase in UK mortgage lending. Throughout Q1 2025, gross mortgage advances have been at their highest degree since This autumn 2022. Nonetheless, this have to be handled with warning as stamp obligation modifications got here into impact at first of April.

Elementary modifications

The Financial institution of England has introduced that 15% of latest loans (presently 10%) may be assessed on 4.5 occasions revenue. Together with modifications to planning legislation, this could assist the trade within the medium time period.

Extra instantly, anticipated cuts within the base charge are prone to stimulate mortgage (and housing) demand. Most economists are predicting a lower in August with extra to observe over the subsequent 12 months or so.

In fact, the housing market may not recuperate. The UK financial system seems fragile and inflation hasn’t but been tamed. Additionally, Taylor Wimpey’s margin is far decrease than earlier than the pandemic. It should subsequently promote extra simply to face nonetheless.

Nonetheless, I feel Taylor Wimpey’s a inventory that buyers might think about. I imagine there’s sufficient proof to recommend that the housing market’s beginning to choose up, which ought to assist it keep its spectacular above-average dividend.