We planted sago palms in our yard this summer and now they look dead, we were told to dig up and separate root

Sago Palms (cycas revoluta) are notoriously famous for often going through a "dead" stage especially when roots have been severely damaged. This condition occurs most often with "pups" or cuttings removed from a parent plant. Provided that they have the proper growing conditions and their corm/bulb is not destroyed, they should put forth new growth within four to eight months. I've seen it sometimes take more than a year to recover. Whatever you do, make sure they are kept more on the dry side with occasional deep watering during this period. Never let them sit in waterlogged soil---the resulting methane will kill them for sure. They prefer rich, well drained and highly organic soil with full sun and warm temperatures, preferably 80 degrees and more. Give them some time. They might just surprise you!

We planted sago palms in our yard this summer and now they look dead, we were told to dig up and separate root
Depends on where you live, I've planted several and the first sprouts (if you will) died and more came up. We have several in pots now and they look great. They need a lot of water and don't like full sun light to start with from my experience.