FTSE 100 to yield 4.1% in 2023! These 2 dividend shares pay more than twice that

2022 is almost over and it is a good year for investors like me who like to buy low dividend stocks with high yield. At FTSE 100 is jam-packed with dividend aristocrats. Deciding which one to buy is like shooting fish in a barrel.

It looks like 2023 will be a good year for dividend stocks, according to investment platform AJ Bell. The index as a whole is forecast to yield 4.1% juice next year. That beats the majority of cash savings accounts with stock price growth and stock buybacks above.

I target dividend stocks

However, I prefer to buy individual FTSE 100 stocks and that way I can get twice the forecast 4.1% return.

House builder Taylor Wimpey (LSE: TW) is currently yielding 8.39% annually. That’s a stonking level of passive income. Even if it is like a high-yielding stock, there is a danger that the payout may not be sustainable.

The company operates in a difficult sector as interest rates rise and analysts predict a house price crash. competition persimmon is in the process of cutting dividends, and Taylor Wimpey may follow suit, but I’m not sure they will.

Persimmon returns are close to 20%, making Taylor Wimpey look quite reasonable by comparison. Especially since it is guaranteed to block 2.1 times by earnings.

Last month, Taylor Wimpey reported a drop in sales and a spike in cancellations, due to the expected cost of living crisis. Things could get worse before they get better, but I suspect the UK housing shortage will prevent a severe crash. Mainly because mortgage rates are not expected to rise as much as thought.

Taylor Wimpey is forecast to generate annual operating profit of around £922m and has a net cash position. That makes it a buy for long-term investors like me. Especially at a valuation of less than 5.6 times current earnings.

A number of FTSE 100 stocks offer higher income, incl Aviva (8.4%), Vodafone (8.95%) and M & G (9.85%). I set my sights higher by choosing a mining giant Rio Tinto (LSE: RIO), which returned 11.35%, the highest in the index.

I would also buy these FTSE 100 income stocks

That’s despite the fact that management cut its dividend in July, after earnings fell short of expectations. This is guaranteed 1.6 times by earnings, which is quite solid and even if it is cut back, the result should still be quite high.

Anglo-Australian miners have been hit by the Covid lockdown and worried about the property market in China. The key is now easy, but now the world is waiting to see how quickly Covid spreads without them.

Rio Tinto’s share price has done well this year, rising 15.82%. Over five years, it is up almost 60%. But it still looks cheap, trading at just 5.38 times earnings. I actually bought the stock in October, and the stock price is about 15% up since then, I’m happy.

At today’s valuation, I think Rio Tinto is still a buy for me as a long-term investor willing to see past short-term challenges. Now play in 2023 and let the income flow.