3 cheap dividend shares I’d buy for lifelong passive income

Here are two dirt-cheap dividend shares on my shopping list today. I think they could deliver exceptional long-term passive income.

Legal & General Group

Legal & General Group (LSE: LGEN) has a great opportunity to benefit from Britain’s rapidly ageing population.

It must paddle hard given the ultra-competitive market in which it operates. But its expertise across fields such as pensions and wealth management could help it to thrive as retirement planning becomes more common.

Legal & General is a true industry giant. It generated pre-tax profit of £1.2bn in the first half of 2022. And, pleasingly for dividend investors, it generates huge amounts of cash with which to pay market-beating dividends.

For 2022, the company carries an 8.6% dividend yield. It also trades on a forward price-to-earnings (P/E) ratio of 6.5 times, making it a great all-round value stock to buy.

Ibstock

Brickmaker Ibstock (LSE: IBST) is a dividend share I already own. And following recent trading details I’m tempted to buy more.

On Tuesday, it said that “robust demand patterns” for its products persisted during the third quarter. As a consequence, trading for the period came in above its expectations.

Higher interest rates pose a threat to the business. Demand for its brick and concrete products could be hit if the housing market suffers a shock. This in turn could damage the passive income I receive.

But from a long-term view, I think Ibstock’s market outlook remains rock solid. And this is why I’d buy more of its shares today. Britain’s colossal housing shortage means home construction rates should rise sharply in the years ahead.

On top of this, brick sales will likely be supported by a strong repair, maintenance and improvement (RMI) market. Renovation activity should remain strong due to the high average age of the UK’s housing stock.

Today, Ibstock carries a decent 6% dividend yield. It also trades on a forward P/E ratio of 8.2 times.

Bank of Georgia Group

Demand for financial products is soaring in certain Eurasian markets. This makes Bank of Georgia Group (LSE: BGEO) another FTSE 250 stock I’d buy for long-term income.

Far-flung Georgia hasn’t been an attractive destination for banking stock investors historically. However, steady reform of the country’s financial industry make it a much more attractive place to invest today.

Meanwhile, the likes of Bank of Georgia continue to enjoy surging revenues as the domestic economy rapidly grows. Pre-tax profit here jumped 39% year on year during the six months to June.

Economic growth in Georgia could suffer in the event of a long Ukraine-Russia war. But this is a risk I think is more than reflected in Bank of Georgia’s rock-bottom valuation.

The firm trades on a forward P/E ratio of 3.5 times right now. Meanwhile, its 2022 dividend yield sits at an enormous 7.6%.