3 dirt-cheap FTSE 100 dividend shares to buy today

I reckon the sell-off market has created some cheap buying opportunities FTSE 100. Here are three dividend stocks that I think are the top buys of the day.

This yield of 9% seems safe to me

HSBC Holdings (LSE: HSBA) made headlines in the financial press last week when it took over the UK operations of a failed US bank. SVB Financial (Silicon Valley Bank).

HSBC’s share price also fell sharply as market concerns grew. However, I think this £110bn giant risks suffering minimal serious problems.

Indeed, I am confident in the group’s 2022 results. This shows stable performance and a strong balance sheet. The outlook statement from CEO Noel Quinn also seemed more confident than ever.

HSBC’s reliance on China remains a risk, in my view, given the political situation. But I think the group’s exposure to Asia also offers growth opportunities that are not available to UK-only banks.

In particular, I expect HSBC to be the big winner from China’s reopening this year.

Brokerage estimates suggest a dividend of $0.60 per share this year, giving it a yield of nearly 9%. That seems pretty safe to me. If I didn’t already have enough bank stock, I would definitely buy it.

A bargain sin stock

After last year’s strong rally, the stock in British American Tobacco (LSE: BATS) has turned around sharply. The tobacco group’s share price has fallen by almost 20% since the end of June last year.

The risks of investing in this business are quite obvious. British American still gets all the profits from tobacco, because harm reduction products are not yet profitable. A long-term decline is a risk, especially in the group’s core US market.

However, sales of vapes and other products are growing rapidly and are expected to be profitable next year. You should also remember that the tobacco business remains bigger and more successful than investors expected 10-20 years ago. I suspect this will continue to be true.

As I write, BATS shares are trading below £30. That’s just seven times forecast earnings. With a well-supported dividend yield of 8%, I think this stock looks cheap right now.

A FTSE 100 hydrogen spin?

The last option is the industry group Matthew Johnson (LSE: JMAT). This business is one of the leading producers of catalytic converters.

Demand for these expensive exhaust devices may decline as the use of electric vehicles increases. But Johnson Matthey has been in business for over 200 years and has evolved successfully before.

The company is now using its existing technical expertise to expand the hydrogen market – an already active sector.

A failed move into battery manufacturing has left the business with something to prove. Other growth projects may fail.

However, I think most of this risk has been priced into the stock. The internal combustion engine is not going away anytime soon – especially in heavy vehicles such as trucks and buses, where the company has a large market share.

Johnson Matthey shares currently trade at 10 times forecast earnings, with a 3.9% dividend yield. That looks like good value to me for a long term investment.