3 dirt-cheap dividend shares! Should I buy them today?

I’m looking for the best UK dividend stocks to boost passive income in 2023. Are the income stocks below too cheap to miss?

Greencoat Renewables

Demand for renewable energy will explode over the next decade. This bodes well for Greencoat Renewables (LSE:GRP) which invests in wind and solar assets in Ireland and mainland Europe.

Renewable energy stocks operating in the US have long been popular with investors. This is due to the tax environment designed to stimulate green energy investment.

Enthusiastically for the Greencoat, lawmakers in Europe are also planning to increase their own subsidies. This week, the European Commission launched an initiative to provide clean energy investment incentives directly to member states.

I like Greencoat mainly because of its wide geographical footprint from Sweden to Spain. Unfavorable weather conditions can severely affect the production of renewable energy and, by extension, the profits of producers. But this wide wing helps reduce the risk.

Today, the company’s stock trades at a price-to-earnings (P/E) ratio of just 8.7 times. It also yields a 5.7% dividend at current prices. This shows exceptional all-round value to me.

NatWest Group

At NatWest Group (LSE:NWG) share price looks very cheap on paper. Changes hands at a P/E ratio of 6.7 times for 2023, while the forward dividend yield is 5.4%.

At FTSE 100 A low value indicates a poor outlook for the UK economy. But the news has been brighter lately and the Bank of England (BoE) now predicts “shallower” recession that will be shorter than expected. The scenario could see profits at Britain’s high street banks exceed forecasts.

That said, the outlook for NatWest and its peers remains uncertain. While the BoE has upgraded its estimates, other organizations (most recently the IMF) have lowered their estimates. The prospect of bad loans and low profits is still a big possibility.

A further rise in interest rates will provide an additional boost to retail banks. However, in my mind, the dire economic environment – coupled with increasing competitive pressure – makes NatWest a poor dividend stock to buy.

persimmon

I would rather buy more shares persimmon (LSE:PSN) today. This is because I believe the long-term demand for new homes will keep the company’s profits growing.

I was also impressed by the solid all-round value. The FTSE 100 housebuilder yields a 6.8% dividend to 2023 and trades on a forward P/E ratio of 11.2 times.

But I’m not ready to increase my stake in Persimmon. Certainly not when news about the domestic housing market continues to surprise.

The latest data from the property listing business Zoopla shows that inquiries from potential home buyers increased by 50% in the last three months of 2022. Conditions may be difficult as interest rates rise and the cost of living crisis persists. And this could affect the dividend levels of Persimmon and its peers in the short to medium term.

I will be looking for opportunities to increase my stake in Persimmon. However, for now, I prefer to buy more dividend stocks to increase my passive income in 2023.