5.8%+ dividend yields! 2 FTSE 100 stocks for investors to consider

5.8% + dividend yields! 2 FTSE 100 stocks for investors to consider

One of the attractive features of FTSE 100 shares compared to many of their international peers is the concentration of higher dividend yields among their ranks. Currently, the average return across the UK's leading index is 3.7%, compared to 1.5% for the S&P 500. Some Footsie stocks provide particularly juicy payouts. For example, Lloyds Bank (LSE:LLOY) and multinational packaging store DS Smith (LSE:SMDS) offer yields of 5.8% and 6.0% respectively. Here's why this pair of dividend stocks deserves attention in investors' portfolios.

Much ink has been spilled on the subject of rising interest rates over the past year. Traditionally, monetary policy tightening is seen as a drag on bank stocks as their net interest margins increase.Against this backdrop, investors may have expected Lloyds' share price to rise following strong half-year profits of £3.9bn. This figure was significantly higher than the £3.1 billion it generated in 1H2022, demonstrating the beneficial effect of the subsequent Bank of England. raising rates for the group. However, Lloyds shares are actually down 9% in 2023.

Part of the reason for the decline is that Black Horse Bank booked a bad loan charge of £419m in Q2 - a substantial increase from £243m in Q1.This suggests that a growing number of Lloyds customers are struggling as the cost of living crisis persists. In addition, the group is highly exposed to sluggish activity in the housing market, given its position as the UK's largest mortgage lender.

That means the stock's fortunes could improve if inflation falls sharply by the end of the year, as expected. Lloyds currently has a price-to-book ratio of 0.74, indicating that it is still a solid investment.Although share price growth may take some time to materialize, the dividend yield appears to be safe. I own Lloyds shares and will continue to hold them as part of my passive income portfolio.

DS Smith shares are also down almost 9% in 2023. However, the company's strong set of annual results suggests it could be an attractive buying opportunity.The business achieved revenues of £8.2 billion, representing 11% year-on-year growth at constant currency. Adjusted operating profits also accelerated, rising 35% to £861m. Crucially for passive income seekers, DS Smith has increased its dividend per share by 20% to 18p.

The group is strongly exposed to the e-commerce market. DS Smith supplies cardboard boxes to companies such as Amazon, among others. I think the long-term outlook for demand from the sector looks good, but the firm's first volume decline in 15 years reflects a challenging business environment in the near term as consumers tighten their belts.

Separately, an attractive feature of DS Smith's long-term strategy is to focus on using recycled corrugated sheet for its products. Environmentally conscious consumers are increasingly avoiding plastic packaging.However, high inflation is a big challenge for business. Rising costs affected the company's bottom line. In addition, the group has recently had to contend with strike action as workers demand better pay packages.

Despite these challenges, inflation-suppressing increases in the prices of its products have boosted the company's coffers. With robust dividends added to the picture, investors may want to consider adding the stock to their watch lists. As for my own portfolio, if I had spare cash I would buy this stock today.While the media raves about Google and Amazon, this lesser-known stock has quietly risen 880% - with:

More than 20 times increase in margin

Almost 60% increase in revenue in 5 years - more than Apple, Amazon and Google!3,000% Profits Explode Of course, past performance is no guarantee of future results. However, we think it is now stronger than ever. Surprisingly, you may never have heard of this company.

Still, there's a 1 in 3 chance you've used one of her 250 brands. Many of these are well-known with millions of monthly website visitors, often helping consumers compare items, shop and save. Now that the "cost of living crisis" is upon us, we believe its influence could be on the rise. And that could bring immediate new profits to investors who are in position today. So please don't leave without reporting FREE,

John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is on the board of The Motley Fool. Charlie Carman has positions in Lloyds Banking Group Plc and Amazon.com. The Motley Fool UK recommended Amazon.com, DS Smith and Lloyds Banking Group Plc. The opinions expressed about the companies mentioned in this article are those of the author 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 we are better investors with a diverse range of insights.

 When it comes to building a robust investment portfolio, dividend stocks have long been a popular choice for savvy investors. Not only do they offer the potential for steady income, but they also provide a buffer against market volatility. In this article, we'll delve into two attractive FTSE 100 shares that boast impressive dividend yields of 5.8% or more, making them prime candidates for income-focused investors. Let's dive in and explore the dividend rewards these stocks have to offer.

British American Tobacco (BAT)

British American Tobacco, the global tobacco giant, is a name that needs no introduction. Thanks to solid performance in the industry, BAT has managed to consistently deliver attractive dividend yields to its shareholders. The company's strong market presence, diverse portfolio of popular tobacco brands and resilient business model position it as a reliable source of dividend income.

Dividend Yield: From BAT offers an impressive dividend yield of over 6.5%, which is well above the market average.Dividend growth: BAT has a history of maintaining or increasing dividend payouts, reflecting its commitment to rewarding shareholders.

Stability: Despite regulatory challenges, the tobacco industry tends to show stability, which bodes well for consistent dividend payouts. Focus: "FTSE 100 Dividend Stocks", "High Dividend Yield Stocks", "Reliable Dividend Stocks", "British American Tobacco Dividend History"

Legal & General Group, a leading financial services company, is another notable addition to our list of dividend-rich FTSE 100 stocks. As an insurance and investment company, L&G has built a reputation for delivering solid financial results that translate into attractive dividend distributions.

Dividend Yield: L&G currently boasts a dividend yield of over 5.8%, making it an attractive choice for income-seeking investors.Financial strength: L&G's strong financial position and diversified business segments contribute to its ability to maintain consistent dividend payouts.

Longevity: With a history dating back to 1836, L&G has demonstrated resilience over the years, which is a positive sign for investors looking for stability.focus: "FTSE 100 financial stocks", "high dividend yielding insurance stocks", "reliable dividend paying companies", "legal and general group dividend history"

 for investors looking for strong dividend income in their portfolio, these two FTSE 100 stocks, British American Tobacco and Legal & General Group, offer compelling options. Their impressive dividend yields coupled with stable business models make them an attractive choice for income-oriented investors. However, always do thorough research and consider your individual financial goals and risk tolerance before making an investment decision.

Disclaimer: The information provided in this article is for educational and informational purposes only. It does not constitute financial advice and you should consult a qualified financial advisor before making any investment decision.