I think these FTSE 100 stocks are 2 of the best shares to buy for my ISA

These two FTSE 100 stocks have doubled in the last year. I think they continue to be among the best shares to buy for my ISA this year.

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Commodity stocks now look like some of the best shares to buy for long-term income and growth. FTSE 100-listed mining companies have been booming lately, yet there could be more to come when the post-Covid-19 recovery takes off.

Commodity stocks are leading the FTSE 100 today, with Glencore (LSE: GLEN) up 3.8% and Anglo American (LSE: AAL) rising 3.1%. Of course, one day’s growth proves nothing. What matters is what happens over 10 or 20 years or longer. That’s my investment time scale. Over such a lengthy term, I expect both Glencore and Anglo American to be among the best shares to buy for both share price growth and dividend income.

Recent performance has been astonishing. Both stocks have doubled over the last year, despite the pandemic. Investors have been positioning themselves for the recovery, ever since last November’s vaccine breakthrough. China remains the prime source of demand for metals and minerals, and its economy is recovering fastest. The shift towards electric cars is also driving demand for iron ore and copper, the latter of which has just hit a 10-year high of more than $9,000 a tonne.

I’d buy these 2 FTSE 100 stocks

Despite recent strong share price growth, Glencore and Anglo American continue to look cheap today. Glencore trades at 10.6 times forecast earnings, while Anglo American trades at just 7 times earnings. From the valuation point of view, these look like some of the best shares to buy today.

This is pricing in a lot of growth over the next year, though. If the recovery flounders and commodity demand slumps, both stocks could disappoint. The sector is famously cyclical, and we need further evidence of a global rebound for them to climb higher.

Right now, this is in the balance, due to vaccine delays and mutant Covid strains. Personally, I remain optimistic. Even if lockdowns drag on, I think Glencore and Anglo American will fly in the longer run. My lengthy investment timeframe gives them plenty of opportunity to do so.

As well as growth, these are attractive income stocks. Glencore recently resumed dividends and is now forecast to yield 4.1%, covered 2.3 times by earnings. Anglo American looks like one of the best shares to buy for income across the entire FTSE 100, with a forecast yield of 5.5% and cover of 2.5.

Two of the best shares to buy

The pandemic has taken its toll, of course. Glencore has seen revenues drop by a third but it has also cut net debt below $13bn, and is even considering a share buyback later this year.

Anglo American has been hit by by falling diamond sales, Covid-19 lockdowns in South Africa, and operational problems in its coal and platinum divisions. Despite that, profits have been better than expected and it has lifted its dividend.

Investing in the commodity sector can be very up and down, but I still think it contains some of the best shares to buy for income and growth. Glencore and Anglo American look like top ‘buy and hold’ stocks for my Stocks and Shares ISA allowance.

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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.

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