2 battered FTSE dividend stocks to buy in July!

I’ve bought several shares during the recent stock market slump. One of them was housebuilder Persimmon (LSE: PSN), a FTSE stock offering unbelievable value for money.

Persimmon’s share price has fallen since I bought in, but as a long-term investor I’m not too concerned. I’m convinced it will soar from recent levels and believe it will still prove a brilliant bargain for me.

These fresh falls in fact mean the housebuilder provides even better value that when I bought. Its forward dividend yield has risen to an eye-popping 13%. Compare that to the FTSE 100 average of 3.9%.

On top of this, Persimmon’s corresponding P/E ratio has dropped to an ultra-low 7.3 times.

House prices keep soaring

The housing market faces some danger as the Bank of England raises interest rates and homeowner affordability is squeezed. In fact Nationwide said that it witnessed “tentative signs of a slowdown” in June.

However, latest data from the building society also showed that home prices continue to rise at a stratospheric pace. The average residential property rose 10.7% year-on-year last month to £271,613.

It’s my belief that demand for new homes will continue to outpace supply despite rate rises and the cost-of-living crisis. And so the market will remain quite robust. Remember that interest rates remain historically low and that lenders continue to act to win over wavering housebuyers.

Just this week, for instance, Halifax announced it was cutting the minimum deposit requirement for newbuild properties to 5%. Britain’s mortgage market is highly competitive and it’s likely that other lenders will be proactive too to keep the country’s housing market alive.

Sure, the risks facing Persimmon are higher that they were a year ago. But the market outlook remains pretty bright all things considered. And besides I think this FTSE firm’s rock-bottom valuation more than reflects the threat caused by rising interest rates.

Another dirt-cheap FTSE stock

I think Glencore’s (LSE: GLEN) another great FTSE 100 dividend stock to buy right now. Recent share price weakness has pushed its forward yield to a mighty 13%.

Meanwhile the commodities producer and trader’s P/E ratio for 2022 has slumped to just 3.8 times.

The danger for stocks like Glencore is that demand for their product could slump as the global economy weakens. Indeed, copper prices recorded their worst quarterly fall for 11 years between April and June as consumption eased.

A bright future

At the same time the long term outlook for commodities demand remains rock-solid, though. The usage of industrial metals and construction materials is tipped to rise strongly as the next ‘commodities supercycle’ kicks off.

Spending in areas such as consumer electronics, housing, green technologies like electric cars and infrastructure will likely grow rapidly over the next decade at least. And the world’s biggest mining companies like Glencore will play an important role in making this happen, too. I dont think the firm’s ultra-low valuation reflects this.

I’m expecting this FTSE firm’s share price to recover strongly from current levels.