I’m looking for the best cheap dividend stocks to buy for my shares portfolio for next year. Here are a few that are grabbing my attention.
11.7% dividend yields
Steppe Cement (LSE: STCM) offers the sort of brilliant all-round value that bargain hunters like me might find hard to ignore. Not only does its dividend yield for 2022 sit at a sparkling 11.7%, but City analysts think earnings here will rise 4% next year. That leaves the company trading on a P/E ratio of just 8.5 times.
This penny stock makes cement in Kazakhstan, the vast majority of which it sells to domestic customers. It is therefore exploiting a market in which construction spending is booming and is tipped to continue growing strongly as urbanisation takes off.
GlobalData analysts, for example, think the construction industry will grow at an average annual rate of 5.8% between 2022 and 2025. I think Steppe Cement is a great way to make money from this phenomenon. Even though profits could take a hit if economic conditions in the Central Asian country deteriorate.
Another Kazakh corker!
Sticking with this part of the globe, I think Central Asia Metals (LSE: CAML) could be another great dividend stock for me to own long beyond 2022. This particular dividend stock pulls copper, lead and zinc out of the ground in Kazakhstan and North Macedonia. It’s therefore well-placed to capitalise on soaring metal demand as production of electric vehicles and renewable energy technology both click through the gears.
I also like Central Asia Metals because, like Steppe Cement, it offers terrific all-round value for money. It trades on a P/E ratio of 6.8 times, created by City predictions that earnings will rise 3% in 2022. The copper colossus also carries an exceptional 6.5% dividend yield for next year.
However, mining shares can be risky investments as production problems can hit revenues hard and cause costs to balloon. Having said that, I think this risk is more than baked into Central Asia Metals’ share price right now.
A cheap FTSE 100 dividend stock
Investors don’t need to scour the London stock market for companies that seem to be undervalued. There’s plenty on the FTSE 100 alone that are attracting my attention today.
One of these is financial services giant Legal & General Group (LSE: LGEN). Not only does it offer up a magnificent 6.5% dividend yield for 2022, but the Footsie firm also changes hands on a forward P/E ratio of 8.8 times (analysts think earnings will rise 4% next year).
Now the markets in which Legal & General operate are highly competitive. But the company has one of the most trusted brands in the business. It’s a quality I think could significantly offset this problem.
I also like the FTSE 100 firm’s broad geographic wingspan that covers Europe, the US and parts of Asia. This gives it protection against weakness in one or two regions and allows it the financial robustness to pay big dividends to its shareholders year after year.
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Royston Wild has no position in any of the shares mentioned. 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.