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Create a second income stream with these 3 dirt-cheap FTSE 100 dividend stocks

Share investors searching across the FTSE 100 for dividend shares don’t need to look far to find brilliant income stocks.

Indeed, the cluster of big yielders I describe below are just some that Britain’s elite stock index currently offers. And they’re not a flash in the pan. Rather, I think they have what it takes to provide savers with a second income stream over an extended period.

And what’s more, these firms can also be picked up for next-to-nothing, each one carrying a forward P/E ratio inside the widely-regarded value territory of 15 times and below.

A proven dividend winner

Profits growth at Taylor Wimpey is about to decelerate sharply in 2018 and could well remain subdued looking ahead.

But the business remains a relatively ‘secure’ earnings pick in my opinion, even despite current dips in homebuyer confidence as there are insufficient home numbers in the UK. And this problem looks set to last as the population grows and government still fails to address the frankly pathetic build rate that has caused this shortfall over the past few decades.

This decent earnings visibility should give the market belief that Taylor Wimpey can keep growing dividends, supported by the builder’s exceptional cash generation. The City certainly thinks so, and it is predicting a 15.4p per share reward in 2018, a figure that yields a mighty 8.9%.

Soaring ahead

Budget flyer easyJet is another share I’ve long tipped to deliver delicious dividends now and in the years ahead.

The double whammy of surging demand for cheap airline tickets from European travellers, coupled with the Footsie firm’s busy route-and-hub-expansion programme, should keep driving profits broadly higher in the years ahead. And this bodes well for future dividends.

What’s more, easyJet is  doubling down on cost savings to help profits (and cash flows) grow still further, and it also stands to benefit from the cost synergies associated with its buyout of Air Berlin’s Tegel airport operations in Germany.

A 54.7p per share payout is anticipated for the year to September 2018 and a 69.3p reward for fiscal 2019, figures that result in chubby yields of 4.1% and 5.2% respectively.

Parcel force

Unless you’ve been living in a cave for the past decade or so you will know about the growing might of the online shopping space.

Those retailers who haven’t been investing in their internet operations have been left by the wayside, with more and more companies spending lavish sums to develop country-specific websites and to develop apps for shoppers who use smartphones. And this means that the number of packages sent through the post is only heading one way, and that is up.

The e-commerce phenomenon still has plenty of distance left to run as retailers ramp up investment, and this bodes well for parcels delivery firm Royal Mail across the whole of Europe. The business is expected to pay a dividend of 24.9p per share in the year to March 2019, resulting in a monster 5.2% yield, and I believe dividends should continue trekking northwards for quite some time.

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Royston Wild owns shares in Taylor Wimpey. 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.