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2 of the best cheap FTSE 100 stocks to buy in an ISA

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The September sell-off was a disaster for many UK share prices. I myself have seen the value of my Stocks and Shares ISA take an almighty whack in recent weeks. We might not be out of the woods either as a several major macroeconomic threats, like supply chain problems that’s supercharging inflation to problems in the Chinese property market, rumble on in the background.

However, as a long-term investor, I’m not concerned by the threat of fresh volatility on global stock markets. I buy UK shares based on what returns I can expect to make over a period of years, usually at least a decade. And I’m confident the British companies I own will provide me with decent returns even if the economic recovery splutters and another stock market crash comes along.

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2 of the FTSE 100 best cheap stocks to buy!

In fact, I’m ready to go bargain hunting following September’s sell-off. Today, there are many great companies trading at rock-bottom prices, ones that could rocket in price once market confidence recovers. Here are what I think could be two of the best cheap stocks to buy right now for my portfolio.

Hand holding pound notes

An all-round bargain

The Taylor Wimpey (LSE: TW) share price fell a whopping 15% during the course of September. But speaking as a shareholder of this FTSE 100 firm, I’m not concerned by the trading outlook here. Even though economic conditions in the UK are deteriorating, the availability of new homes coming to market is still failing to meet demand by a long way. I expect this to continue, too, as an ultra-competitive mortgage market and huge financial support for homebuyers from the government remains.

In fact I’m thinking of buying more Taylor Wimpey shares at current prices. It trades on a forward price-to-earnings ratio of nine times and sports a massive 5.5% dividend yield. I think it’s one of the best cheap stocks to buy despite the threat that the Bank of England could hike interest rates to curb runaway inflation. That could have a serious impact on homebuyer affordability and consequently demand for the housebuilder’s big-ticket products.

11.4% dividend yields!

BHP Group (LSE: BHP) is another FTSE 100 value stock I might buy for my ISA. The diversified miner fell 16% in value in September, leaving it trading on a forward P/E ratio of just seven times. Moreover, right now BHP carries a gargantuan 11.4% dividend yield for this fiscal year.

It’s true that BHP could suffer if the Chinese construction sector suddenly crashes. The firm sources 70% of underlying EBITDA from sales of iron ore. But I’d argue that this threat is baked into the company’s low valuation. I think BHP could prove a top buy as the global economy gradually improves following the Covid-19 crisis and raw materials demand naturally rises. I also expect demand for its metals like copper to soar as the green technology revolution accelerates.

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Royston Wild owns shares of Taylor Wimpey. 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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