I’d buy these two FTSE 100 dividend stocks in an ISA today

The FTSE 100 has rebounded by over 25% since hitting its multi-year low of 4,993 in March. However, despite this performance, several FTSE 100 dividend stocks continue to offer excellent value for money.

The two stocks discussed below are perfect examples. These companies could offer attractive total returns for investors over the next few years. Especially when purchased in a tax-efficient account, such as an ISA. 

FTSE 100 dividend stocks

Berkeley Group Holdings (LSE: BKG) has, like many other FTSE 100 dividend stocks, been severely affected by the coronavirus crisis. Its latest trading update showed sales declined 50% in April and May. 

Luckily, government restrictions on the housing market were eased at the beginning of May. The company says it has since seen a significant rebound in sales activity.

It’s difficult to tell if this trend will last for the rest of the year. Nevertheless, while the FTSE 100 firm might suffer more uncertainty in the short term, the homebuilder should benefit from several tailwinds over the long run. 

The UK housing market remains structurally undersupplied. Government initiatives such as the Help to Buy scheme should continue to stimulate demand. The Bank of England’s recent decision to lower interest rates also means mortgages have become more affordable. 

These tailwinds suggest that while home prices might stagnate or fall this year, the long-term outlook is more positive. As one of the largest homebuilders in the country, Berkeley should benefit from this growth.

As such, Berkeley could offer long-term growth potential. While the company has recently reduced its dividend to preserve cash, it has an excellent track record of returning excess profits to investors. 

After its 16% share price decline since the start of the year, this FTSE 100 dividend stock could offer great value for money.

Persimmon

Fellow FTSE 100 dividend stock Persimmon (LSE: PSN) is also likely to benefit from the housing market trends outlined above.

Persimmon, one of the country’s largest builders, trebled pre-tax profits between 2013 and 2019. Over the same period, the company returned around 1,000p in cash dividends to investors.

While the company is likely to suffer a decline in earnings this year, 2021 could see a healthy recovery. Its latest trading update shows the builder continued to take customer orders and sell homes throughout the worst of the pandemic.

In the eight weeks ended 10 May, the group secured 1,351 sales reservations and 1,300 legal completions. 

The company has been on somewhat of a quality drive in recent years. After a well-publicised scandal involving the quality of its homes, management has been focusing on improving customer service over the past few months. This has already had a positive impact on Persimmon’s relationships with customers, although it has impacted profit margins. 

Still, while these efforts might cost money in the short term, investing in customer service usually pays off over the long run. That’s why I think this FTSE 100 dividend stock is a worthwhile investment for your ISA today.