8.3% and 5.5% dividend yields! Should I buy these cheap FTSE 100 income stocks?

I am looking for the best FTSE 100 dividend stocks to increase long-term passive income. So, if anything, which high-yielding UK stocks are worth buying in 2023?

NatWest Group

At NatWest Group Changes in the NWG.LSE share price for a long time are clearly visible on the share price history page of this company. . But at current levels the FTSE 100 bank still offers excellent value, at least on paper.

The company offers a 5.5% dividend yield for 2023. And it trades at a forward price-to-earnings ratio (P/E) of 6.5 times.

Higher rates could boost the bank’s profits in 2023. City analysts think the Bank of England will raise its benchmark again by 0.75% or 1% to peak above 4% this year.

This will allow NatWest to make better profits from its lending activities. But I am not tempted to buy bank shares in 2023. This is mainly because it can face a tidal wave of bad debt as the British economy splutters.

Bank of England data last week showed that lenders expect an increase in secured lending to households over the next three months. The lender’s net score of 44.3 increased significantly from the 13.9 previously recorded for the first quarter of 2022.

NatWest may face prolonged profit pressure, if the UK experiences a prolonged recession. Structural problems in the domestic economy can affect GDP for a long time. These established banks are also experiencing reduced profit growth as digital banks and challengers raise their game.

Glencore

On balance I prefer to buy FTSE 100 dividend stocks Glencore (LSE:GLEN) for my investment portfolio.

Commodity businesses like this also present risks to investors in 2023. More specifically, profits in mining companies are at risk due to the high number of Covid-19 cases in China.

The country’s economy will only grow by 3% in 2022 due to pandemic-related lockdowns. This is down significantly from 8% the previous year. Lockdowns have been eased more recently, although that could happen again if infections balloon again.

But as a long-term investor, I still think Glencore shares are very attractive. And I believe that their excellent value makes them a top investment. The business trades at a forward P/E ratio of just 6.2 times and yields an 8.3% dividend.

You see I expect Glencore’s share price to rise as the commodities supercycle rises. The business sells and markets a variety of industrial metals and energy products. It provides exposure to various high-growth sectors like renewable energy, construction and consumer electronics.

Take copper, the main profit driver for FTSE 100 companies. Analysts at Goldman Sachs think there will be a red metal supply gap of 8.2m tonnes by 2030 due to rising demand and weak mine development.

A similar supply and demand imbalance is evident for many of Glencore’s other markets. And I believe this can drive corporate earnings – and by extension shareholder value – higher.