I’m searching for the best cheap dividend stocks to buy for my shares portfolio. Here are three income heroes on my watchlist right now.

Looking good

I think Lookers (LSE: LOOK) could be a great buy for 2022 and long beyond as sales of electric vehicles (EVs) in the UK rocket. Growing environmental concerns are seeing drivers ditch their pure-petrol vehicles in massive numbers for battery- and hybrid-powered autos. This bodes well for car retailers like this UK share. The Society of Motor Manufacturers and Traders believe 260,000 pure battery-powered cars will roll out of UK showrooms next year alone.

That said, driver appetite for these new-age vehicles could disappoint if government investment in related infrastructure fails to take off. Indeed, concerns are rising that the Department for Transport is watering down plans for the widescale deployment of EV charging points announced earlier this year.

Still, I think this risk could be baked into Lookers’ share price today. The retailer trades on a P/E ratio of just 6.8 times for 2022. This, combined with a chubby 3.8% dividend yield, makes it an attractive buy, in my book.

8.5% dividend yields

I’m confident that Britain’s housebuilders will enjoy another strong year in 2022. It’s why I’m considering buying Persimmon (LSE: PSN) shares for my portfolio today.

This FTSE 100 dividend stock carries a mighty 8.5% dividend yield for next year. It offers plenty of bang for my buck from an earnings perspective too, with the builder trading on a P/E ratio of just 10.8 times. It’s a reading that reflects the possibility that soaring construction costs might hit profits hard in 2022.

I think the likes of Persimmon will continue to witness robust demand for their new-build homes in the new year. This makes the housebuilding sector an attractive investment destination, in my eyes.

Low interest rates and the government’s Help to Buy scheme will continue to support first-time buyers. And intensifying competition among Britain’s lenders is helping buyer affordability too. Habito’s latest product announced this week allows customers to borrow seven times their salary.

Another dividend hero on my shopping list

Copper miner Central Asia Mining’s (LSE: CAML) another dividend share I’m looking at right now. It’s true that demand for its metal might sink if China’s real estate sector nosedives and pulls the country’s economy with it. But, as a long-term investor, I believe the pros of owning this share could outweigh the cons.

I’m not just a fan because I think rising investment in green technologies like EVs and wind turbines will supercharge copper demand over the next couple of decades. I also expect red metal consumption to increase as infrastructure spending across the world steadily increases.

I don’t think Central Asia Mining’s rock-bottom valuation reflects these positives. The business trades on a P/E ratio of just 6.9 times for 2022 at current prices. This, combined with a jumbo 6.6% dividend yield, provides plenty of value, in my opinion.

The post 3 dirt-cheap dividend stocks (including an 8.5% yield) to buy! appeared first on The Motley Fool UK.

More reading

• 2 stock gems for high passive income in 2022
• Best British shares for January
• This whooping 8% FTSE 100 dividend yield is sizzling
• Could these dirt-cheap UK shares make me big money in 2022?
• How I’d invest £11.25 a week for a passive income

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.