3 cheap LSE dividend shares to consider buying in October

Income investors will be eagerly awaiting news from a number of top dividend shares in October. I think these could be three of the best.

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Quite a few dividend shares on the London Stock Exchange have been picking up in the past month.

Maybe people are starting to notice the big yields. So should we buy before it’s too late? These three firms with strong dividends will post updates in October.

Housing resurgence

After a big dip, housebuilder shares have started to climb back. Since a low in July, Bellway (LSE: BWY) shares have gained 12.5%. But they’re still a long way down since early 2021.

Full-year results are due on 17 October, and my eyes will go right to the dividend news.

We’re looking at a forecast yield of 6.5%. And after the biggest house price falls since 2009, I think that’s pretty good — if it’s actually paid, that is.

At the halfway stage, Bellway kept its interim dividend at 45p per share. The firm also announced a share buyback of £100m, so there does seem to be a fair bit of free cash around this year.

These are tough times for the building trade. But long-term housing demand is nowhere near finished.

And with a price-to-earnings (P/E) ratio of 6.6, I reckon this is definitely an income stock to consider.

Hammered banks

NatWest Group (LSE: NWG) should post Q3 figured on 27 October. And at 6.6%, the forecast dividend yield is a big one.

NatWest is in the midst of a share buyback too, of up to £500m announced at H1.

At the same time, the bank posted a 5.5p interim dividend. After paying only 3.5p at the same stage a year ago, that was pretty good.

Since then though, NatWest has been through a bit of a PR disaster in its handling of Nigel Farage’s Coutts account. And heads rolled.

But will that make any dent in NatWest’s long-term profits? I really don’t think so.

With the shares on a P/E of only five, I think it’s got to be worth a closer look for dividend investors when we get that Q3 update. It’s hard to choose my top bank right now though.

Falling dividends

Dividend yields from miners and commodities stocks have fallen from their peaks. They were leading the FTSE 100 a couple of years ago, but that crown’s been taken by financials now.

Still, even after a share price fall in 2023, Glencore (LSE: GLEN) still offers a nice fat 7.7% yield.

Forecasts suggest the yield should drop in the next couple of years. But they show it staying above 6%, which is really pretty good.

It’s in a cyclical sector, with profit volatility really out of its control. But when the cycle turns, I reckon Glencore is possibly the best in the business.

As a commodities trader, the firm has more diversification than individual miners with their focus on specific minerals.

The future depends a lot on what happens with demand from China, which is a risk. But that factor is always with us, and long-term investors have to deal with it.

We’re due a Q3 production report on 30 October.

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.

Alan Oscroft 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.

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