FTSE 100 shares with dividend yields above 5% that I think could help you get richer and retire earlier

first_imgSimply click below to discover how you can take advantage of this. See all posts by Andy Ross Andy Ross | Sunday, 28th June, 2020 | More on: NG RIO “This Stock Could Be Like Buying Amazon in 1997” Andy Ross owns shares in National Grid. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Our 6 ‘Best Buys Now’ Shares Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Most investors will know by now that many companies have cut their dividends as a result of the Covid-19 crisis. However, despite the doom and gloom there are FTSE 100 shares still paying a decent dividend. Given dividends play a big role in total returns for most investors I think it could be worth checking some of them out.A 6.8% dividend yield makes this share excitingThe first high yielding FTSE 100 share I’d think about buying is Rio Tinto (LSE: RIO). The company is clearly not without controversy, as shown by the recent furore over the blowing up of caves important to Aboriginal people in Australia. This may bring with it increased political pressure which could hold back the share price and pose a risk.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…On the point about risks, the growth of ESG investing, especially among the large institutional investors, perhaps has the potential to also hold back the share price. More so possibly in the future than has been the case in the past. However, fundamentally and longer-term I think the group is attractive from an investment point of view. Rio Tinto is a high margin business. Demand from China especially for iron ore seems unlikely to significantly fade, which should support the share price.Rio Tinto always carries some risk. It’s cyclical, which means the shares do fluctuate more than other FTSE 100 shares. But overall I think the yield, at 6.8%, makes it an attractive investment.A safe and steady 5% FTSE 100 dividend yieldNational Grid (LSE: NG) is a very different kind of share. It’s a defensive share so is less volatile. It’s earnings are regulated giving it much more visibility over its future income and allowing it to plan its capital expenditure. National Grid’s business is unlikely to deliver surprises either good or bad. This makes it well suited to providing income for investors; even more so in the uncertain times we’re currently in.The share price is up just a smidgen so far this year. This shows how the shares lack volatility. Despite the V-shaped recovery (so far) many other shares are still at least a little down on where they started 2020.For National Grid I think one of its strengths is that it operates in very stable markets. It has operations in the US and the UK. National Grid has been increasing operating profits in the US and I think that market has potential for more growth.With a 5% dividend yield, I think National Grid shares are a great buy for any investor’s portfolio. The payout is covered by earnings and has been steadily growing year-on-year, which I expect to continue.With demand for electricity not going away anytime soon, I think the shares provide one of the safest FTSE 100 dividend yields. I think other defensive shares also are well-suited to investors looking for income. Companies such as GlaxoSmithKline and United Utilities, to name just two examples, could be worthwhile investments also.center_img I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. FTSE 100 shares with dividend yields above 5% that I think could help you get richer and retire earlier Enter Your Email Address Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Image source: Getty Images. last_img read more