2 dirt-cheap UK shares with BIG dividends to buy

I’m searching for the best dirt-cheap UK shares to buy for my shares portfolio this November. Here are two big-dividend-paying bargains on my watchlist right now.

6.7% dividend yields!

Gold-producing stocks have fallen out of favour with UK share investors in recent times. Demand for them has dropped along with the gold price, given continued statements by central bank policymakers that soaring inflation will be transitory. Growing evidence that inflationary spikes are anything but temporary however, suggests bullion prices could be about to fly again.

I think buying Polymetal International (LSE: POLY) shares is a great way to ride a possible surge in precious metal values. Today the Russia-focussed digger trades on a forward price-to-earnings (P/E) ratio of just 9 times. But what really attracts me to this FTSE 100 share is its gigantic 6.7% dividend yield.

There’s no guarantee that gold prices will climb, of course, even if it’s my opinion that they will. Rising bond yields, an improving economic outlook, and/or an increasing US dollar could all dent demand for the safe-haven asset and, by extension, profits at gold miners like Polymetal.

However, I still think the potential rewards on offer from the Footsie firm far outweigh the risks. Don’t forget that Polymetal is also speeding up development of its Prognoz and Nezhda projects to make the most of the favourable silver outlook.

Another dirt-cheap UK share I’d buy

I’m also convinced that Britain’s housebuilders will be great income generators over the next decade. I own a couple of these big-yielding stocks and I’d happily buy Redrow (LSE: RDW) shares for my portfolio too. This construction giant carries a giant 4.7% dividend yield. It trades on a rock-bottom forward P/E ratio of 7.2 times too.

Favourable lending conditions and ongoing government support for first-time buyers has turbocharged home sales in the UK. Property listings website Zoopla expects transactions to hit their highest level this year since 2007 . Strong homes demand is expected to continue into 2022 too, it says, with a shortage of available homes also set to keep driving significant price increases.

These supply and demand dynamics have supported the likes of Redrow for more than a decade.  And they look likely to persist for many years into the future too, providing share investors with a terrific buying opportunity.

Pre-tax profits at Redrow rocketed 124% during the 12 months to June, and its record order book of £1.43bn gives it terrific visibility moving ahead.

The main fly in the ointment for stocks like this is the growing problem of ballooning costs. Prices of essential products such as timber, steel and aggregates are soaring as supply chain problems persist. Indeed, some materials are so scarce that some building project delays might become more frequent.

It’s my opinion however, this risk is more than reflected by Redrow’s rock-bottom valuation. Besides, I think the housebuilder’s encouraging long-term outlook more than offsets the threat of these near-term pressures.

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Redrow. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.