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The ITV share price is a FTSE 100 dividend stock I’d buy for my ISA right now

While the prospects for the UK economy continue to be uncertain, there appear to be a number of good value dividend shares on offer within the FTSE 100. Among them is ITV (LSE: ITV), with the media company having a wide margin of safety and a high income return forecast for the current year.

Although there may be risks ahead for the business, it could offer long-term total return potential. Alongside another income stock that released results on Friday, it could be worth buying within an ISA at the present time.

High return prospects

The stock in question is property developer and investment specialist Henry Boot (LSE: BOOT). Its 2018 results showed a fall in revenue of 2.8%, while profit before tax moved 12.2% lower. An uncertain economic outlook contributed to challenging trading conditions for the company. It expects those conditions to continue in 2019, which could mean that its shares are volatile in the near term.

However, with its bottom line due to rise by 3% in the current year, it looks set to overcome the challenges it faces. Its price-to-book (P/B) ratio of 1.1 indicates that it offers a wide margin of safety and may deliver improving share price performance over the long run.

With Henry Boot having a dividend yield of 3.8%, it could offer income investing appeal. Dividend growth could be strong over the medium term, with the company’s dividend payout being covered three time by profit. As such, although it may offer subdued performance in the near term, from a long-term perspective it could have investment potential.

Improving prospects

As mentioned, the outlook for ITV continues to be uncertain. As a highly cyclical company, it is arguably more reliant on the wider economy’s performance than is the case for some of its FTSE 100 peers. With the political and economic outlook for the UK being highly fluid at the present time, demand for TV advertising has come under pressure. This situation could remain in play throughout the remainder of the Brexit process.

As such, the growth prospects for the stock appear to be limited over the short run. In the current year, for example, ITV is due to post flat earnings growth. While disappointing, investors appear to have priced in its limited earnings growth potential over the coming months. For example, it has a price-to-earnings (P/E) ratio of 8.5. This suggests that it offers a wide margin of safety.

In terms of its income prospects, the stock currently yields 6.3% from a dividend that is covered 1.9 times by profit. With a refreshed strategy due to come into play that will focus on a wider range of growth areas, the long-term prospects for the business could be relatively bright. As such, now may be the right time to buy it for the long term within an ISA.

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Peter Stephens has no position in any of the shares mentioned. The Motley Fool UK has recommended ITV. 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.