Dividend shares: 2 FTSE 100 miners to buy for massive passive income

According to the broker AJ Belldividend payment for FTSE 100 Shares are expected to hit an all-time high of the year. With that in mind, I have bought these two miners with high growth and yield to generate healthy passive income.

1. Glencore

With a decent dividend yield of 3.9%, it shows first on my list Glencore (LSE: GLEN). Jefferies think that coal mining stocks are undervalued. This is especially the case given the rise in coal prices. Gas prices have fallen due to warmer temperatures in Europe this season. However, due to a combination of factors, such as colder Asian winters, the region’s heavy reliance on coal, and the reopening of China, prices are forecast to remain strong in the coming months.

Therefore, it is not surprising to see German recommend Glencore stock for its dividend and growth prospects. In addition to generating most of its revenue from coal, the commodity giant is also the world’s largest producer of base metals. Due to its portfolio of metals such as copper, zinc and nickel, the company has a bright future. The metal is crucial to producing batteries for the electric vehicle revolution.

In addition, it has the support of several other investment banks. That’s what he likes UBS, Citi and JP Morgan has a ‘buy’ rating on the stock as well, with the latter two labeling it as one of its top picks for 2023. Combined with a strong balance sheet, excellent growth prospects for the bottom line, and dividends, optimism for the stock is certainly understandable. .

Couple the above with its low valuation, and it’s easy to see why Glencore is also a top pick for my portfolio.

2. Rio Tinto

Another monster dividend stock in my portfolio is the iron ore giant, Rio Tinto (LSE: RIO). Although there is a volatile 2022, I recommend buying stocks in early December due to strong fundamentals. Since then, the price of iron ore has continued to rise sharply. However, there are risks to consider, especially recessions in Europe and the US. Even so, analysts think any potential downside has been priced in.

However, moving to the bullish thesis, there are many reasons to invest. Most profitable is its status as a dividend aristocrat. Rio stock has a strong history of paying large and plentiful dividends.

To complement this, China’s abandonment of the zero-Covid policy should allow industrial and construction activities to continue with less. In addition, economic stimulus has been anticipated to provide support for metal prices. This should result in higher income which usually translates into larger dividends.

Additionally, other metals in Rio’s portfolio such as copper and lithium will be beneficial for long-term growth as they are critical building blocks for green technology. After all, the mining titan showed significant copper capabilities in its latest trading update. This has led the likes of Berenberg and UBS to question whether the initial bearishness on the stock was justified at all.

However, current valuation multiples do not look cheap. So, I won’t be buying more shares right now. However, I will hold onto my original position for passive income, and may buy more if Rio’s share price falls.