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3 cheap UK shares to buy for high dividend yields

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I think there are currently plenty of cheap UK shares with high dividend yields that look attractive in the FTSE 350. With that in mind, here are three stocks I would buy today that meet my criteria. 

Cheap UK shares

The first company on my list is the insurance group Aviva (LSE: AV). At the time of writing, this organisation is trading at a P/E multiple of 7.3. That looks cheap compared to the market average of around 14.

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The shares look cheap because the organisation faces some significant issues. Growth is sluggish, and management has been trying to turn things around for a couple of years. The company has been selling assets and exiting markets

Only time will tell if these initiatives will pay off. However, in the meantime, investors can look forward to a dividend yield of 5.8%. This distribution is not guaranteed, but I think it seems sustainable for at least the next 12 months. If growth returns, the value of the stock could rise substantially as investor sentiment improves. That’s why I would buy the investment for my portfolio today. 

High dividend yields

A business with one of the highest dividend yields of all UK shares is Imperial Brands (LSE: IMB). Ethical considerations aside, this tobacco company looks dirt-cheap at first glance. It is trading at a P/E ratio of less than 6.

Unfortunately, it’s clear why investors are giving the business a wide berth. Tobacco consumption worldwide is falling, which implies Imperial’s profits will decline in the long run.

Still, I think this business is incredibly appealing as an income investment. It supports a dividend yield of just under 10% at the time of writing. So, even if the company does not grow for the next few years, investors could receive a near double-digit dividend yield. That’s why I would buy the stock from my portfolio today despite the challenges the corporation may face going forward. 

All that glitters

The final group on my list of cheap UK shares with high dividend yields is Centamin (LSE: CEY)

This gold miner has earned itself a reputation of being one of the best income stocks on the market over the past few years. It is conservatively managed, has a strong balance sheet, and is incredibly cash generative.

Based on current analyst projections, the stock could yield 6% for the year ahead. It is currently dealing at a forward P/E ratio of 10.3.

Despite the company’s attractive qualities, I think it’s riskier than the investments outlined above. As a gold miner, the corporation is exposed to volatile gold prices. It also relies on a skilled workforce, which could become quite expensive if labour costs rise. Both of these factors could depress the business’s profit margins, putting its dividend at risk.

These risks aside, I would buy the stock for my portfolio today based on its dividend potential and strong balance sheet.

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Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended Imperial Brands. 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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