3 of the best cheap FTSE 100 dividend stocks to buy!

I’m searching for the best FTSE 100 dividend stocks to buy for my equities portfolio. Here are three ultra-cheap shares on my radar right now!

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I’m searching for the best FTSE 100 dividend stocks to buy for my portfolio. I think these top-class income stocks could be too good to miss at current prices.

Getting in on the green revolution

I reckon profits at Glencore (LSE: GLEN) could leap as investment in green technology increases. This dividend stock — which yields an impressive 7.4% for 2022 — produces copper, cobalt, zinc, nickel and ferroalloys. Demand for these metals looks set to take off as investment in green infrastructure, electric vehicles, wind turbines and the like takes off.

On the other side of the coin, Glencore is also involved in the production of fossil fuels. I’m encouraged by recent news that activist investor Bluebell Capital is pushing for the firm to divest its thermal coal operations. But as things stand, it still exposes investors to some risk as the world switches from oil and coal to renewable sources. 

Today Glencore trades on a forward price-to-earnings (P/E) ratio of 7.1 times. This is comfortably inside the widely-accepted ‘good value’ watermark of 10 times and below. And it makes the company a top buy for me, despite all this issues, I feel.

Another FTSE 100 bargain

Our addiction to our smartphones illustrates why Vodafone Group might be one of the best FTSE 100 stocks to buy as consumer spending comes under pressure. Our need to stay connected means people will cut back on essentials to pay for their mobile and broadband services. An Ofcom report released today showed that people have indeed reduced spending on food and clothes in order to continue paying for communications services.

I don’t just think Vodafone is a great buy for the near term, however. The steady rollout of 5G offers brilliant sales opportunities in the years ahead, for example, as does the company’s telecoms and mobile money operations in Africa.

I’d buy Vodafone, despite the highly-regulated nature of its services and the threat this could pose to future profits. I think it offers all-round value that could be too good to miss. The business currently trades on a forward price-to-earnings growth (PEG) ratio of 0.5 and packs a 5.5% dividend yield.

9.5% dividend yield!

I think that having exposure to gold is a good idea as geopolitical fears grow. And I think that buying UK shares is the best way to go about it. Such a strategy allows me to benefit from rising metal prices whilst receiving a dividend in the process. I’d do this by investing in FTSE 100 share Polymetal International (LSE: POLY). The yield here sits at an impressive 9.5%.

Safe-haven buying has pushed gold prices steadily higher in recent weeks and it just hit three-month highs. It’s no coincidence that Polymetal’s share price has also moved higher, either. Yet despite these gains the gold digger still trades on a rock-bottom P/E ratio of 6.9 times for 2022.

I think a combination of fears over the Ukraine crisis and soaring inflation could well push yellow metal prices to fresh record highs in the coming months. The current peak sits around $2,070 per ounce struck in summer 2020. I think Polymetal’s a top buy, despite the ever-present risk of production stoppages to its earnings.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Vodafone. 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.

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