2 cheap FTSE 100 dividend shares! Should I invest in them today?

At FTSE 100 has surged at the beginning of 2023. But despite the heady results right index there are still many British blue chips that offer exceptional value on paper.

The following two UK stocks offer a dividend yield above the Footsie average of 3.7%. They also trade at rock-bottom earnings multiples. So should I add it to my investment portfolio today?

Taylor Wimpey

I already have a stake in it Taylor Wimpey (LSE: TW). And at the current prices I am tempted to add some more to the investment portfolio.

At 114.7p per share, the housebuilder trades on a price-to-earnings (P/E) ratio of 10.4 times. It also carries a corresponding dividend yield of 7.6%.

I believe the business will generate solid long-term profits as the UK rebuilds itself from the housing crisis. The government believes the UK needs at least 300,000 new homes a year to meet growing demand.

However, the bleak short-term outlook means I’d be happy to buy more dividend stocks to boost income in 2023. Last week Taylor Wimpey said, “we enter 2023 with a lower personal order book than in recent years“. It also says, “we expect the overall volume to decrease” this year because the appetite of buyers has decreased.

A sharp slowdown in the housing market is still possible as interest rates rise and the economy shrinks. And as a result, the dividend here could be lower than forecast.

I’ll be looking for signs that housing demand has picked up before buying more parts of this cycle.

The Vodafone Group

I think The Vodafone Group (LSE:VOD) could be better placed to pay a giant dividend in 2023. Demand for telecoms remains unchanged at all points in the economic cycle. So these FTSE 100 companies need to generate the profits they need to fund large shareholder payouts.

Vodafone is also an impressive cash generator. It also sells assets to provide additional balance sheet. In November, the company agreed to sell a €3.2 billion stake in the tower business, with the deal scheduled to close in the first half of 2023. And last week it announced the sale of its Hungarian operations for €1.7 billion.

So, even if earnings are disappointing, companies should have the capital to deliver market-beating dividends.

City analysts agree, and for the financial years to March 2023 and 2024 Vodafone carries a market-beating 9% dividend yield. The company also provides a fair value on anticipated earnings. At 91.7p per share it is trading on a price-to-earnings growth ratio (PEG) of 0.8, below the benchmark of one bargain.

I expect the company’s aggressive drive into 5G to generate tremendous profits. I also believe that exposure to Africa’s fast-growing economies may well pay off.

Investors should note that strong competition in the European market can also impact earnings. But I am seriously considering adding Vodafone shares to my portfolio now.