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Two FTSE 100 dividend stocks yielding 5% I’d buy before the ISA deadline

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Dice engraved with the words buy and sell, possibly in FTSE 100
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If you’re looking for attractive dividend stocks to include in your Stocks and Shares ISA this year, the FTSE 100 is a great place to start. Right now, there’s a whole range of companies in the index offering high yields, meaning it’s never been easier to build up a passive income stream within your ISA.

Today, I’m going to highlight two FTSE 100 stocks that I believe offer strong value at present. Both offer dividend yields of around 5%.

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DS Smith

DS Smith (LSE: SMDS) is a leading international packaging business which specialises in manufacturing customer-specific packaging. Geographically diversified, the group operates in 37 countries worldwide and its customers include the likes of Amazon, ASOS and Ikea.

There are several reasons why I look the look of DS Smith shares right now. For starters, the group appears to have momentum at present. Revenues and profits have surged over the last five years, and in a recent trading update, management told investors that “trading has continued to be strong” since November, and that it is confident of “continued strong demand” for its innovative and high-quality sustainable packaging.

I also like the long-term growth story here. Increasingly, shoppers are shunning the high street and buying more and more goods online. This is a trend that is likely to continue and as a group that develops customised cardboard packaging solutions for major online retailers, DS Smith looks well placed to benefit from the online shopping growth story. The company’s focus on sustainability is another plus.

Finally, after a dip in the share price on the back of global recession fears late last year, the stock trades at a really attractive valuation at the moment. With analysts expecting earnings and dividends of 35.5p and 16.3p for the year ending 30 April, the forward P/E is just 9.7 and the prospective yield is 4.8%. At those metrics, DS Smith is a fantastic ISA buy, in my view.

Schroders

Asset manager Schroders (LSE: SDRC) – which is held in high regard by top portfolio manager Nick Train – is another FTSE 100 dividend stock that I like right now. I particularly like the non-voting class of the shares, as these carry a higher yield than the regular shares.

As an asset manager, Schroders is a stock-market proxy. In other words, its fortunes are tied to stock market movements. While that can obviously be a disadvantage in the short term, I see it as a plus because, over the long term, stock markets tend to rise. As such, the group looks well placed to continue growing over time, in my opinion.

Schroders has an excellent reputation within the investment management industry and it also has a strong track record in relation to the outperformance of its funds. Indeed, over the five years to 31 December, 76% of its assets outperformed their respective benchmarks, which shows that the group is adding value for investors. That’s important given the increasing popularity of passive funds in recent years.

Schroders shares pulled back late last year as global equity markets dived and in my view, they offer a lot of value right now. Trading on a forward P/E of just 10.4 and offering a prospective yield of a healthy 5.4%, I see considerable buy-and-hold appeal here.

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Edward Sheldon owns shares in DS Smith and Schroders (non-voting). The Motley Fool UK has recommended DS Smith and Schroders (Non-Voting). 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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