2 cheap FTSE 100 dividend stocks! Should investors buy them in February?

These two FTSE 100 stocks offer wide dividend yields and low earnings multiples. Which (if any) investors should buy in the coming weeks?

BT Group

BT Group‘s (LSE:BT.A) share price is one of the FTSE 100’s star performers in 2023. But despite its recent rise, the telecoms titan continues to offer good value on paper.

The company trades at a forward price-to-earnings (P/E) ratio of 6 times. It also offers a dividend yield of 5.9%.

But for me, BT’s low income does not represent a decent value. This simply represents the various risks to the current profit estimate. Furthermore, I believe the dividend forecast is in grave danger due to the company’s uncertain profit prospects and large debt. They had net debt of £19bn as of September.

Demand for telecom services is set to heat up as the world becomes increasingly digital. In theory, this should present huge profit potential for BT.

The problem is that the company faces strong competition in the market. Competing companies include Sky, Vodafone, and Virgin Media has eroded its customer base in recent decades. And now the Openreach division faces unprecedented competition as rivals invest in their own infrastructure divisions.

On top of this BT faces extreme regulatory pressure. Just last week Ofcom announced it was launching an investigation into whether the company offered “clear and simple” contract information to mobile and broadband customers.

Rio Tinto

I believe in building stocks in metal producers Rio Tinto (LSE:RIO) is a better choice for investors. It faces significant risks, but I find the long-term investment prospects here very attractive.

Commodity exploration can be hit-and-miss and disappointment is detrimental to earnings forecasts. Mine development problems are common and very expensive. Even when production is finally up and running, some problems can arise to take a big bite out of profits.

Industrial action, bad weather and security vehicles for example can affect production and reduce income.

That all sounds very negative. However, I still believe that Rio Tinto shares are a good investment. Encouraging for investors, the company has a good track record in all stages of the mining process. This explains its listing and position in the FTSE 100 as the third largest mining company by profit. Those advantages are too good to ignore, I feel.

Rio Tinto has mines, refineries, and smelters in 35 countries. This reduces the risk that problems in one or two projects pose to the group’s earnings.

I also like miners because of the few metals they provide. These include copper, lithium, scandium and aluminum. It is an important ingredient in the energy transition process, a phenomenon that will lead to the next commodity supercycle.

Take copper, for example. Analysts at Citi It thinks demand for the red metal will increase by 7m tonnes between 2021 and 2030, driven by an increase of 4.6m tonnes from the power generation, electric vehicle and grid storage sectors.

Today Rio Tinto shares trade at an unexpected forward P/E ratio of 11.2 times. They also carry a market-beating 5.8% dividend yield. I think it is the highest value stock to buy next month.