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Two beaten-up FTSE 100 dividend stocks I’d buy for my ISA in September

Given the high level of economic uncertainty right now, many investors are reducing their exposure to stocks. For example, just a few days ago, the world’s largest wealth manager, UBS, said that it was shifting its position on equities to ‘underweight’, following escalated trade tensions between the US and China.

However, personally, I’m following the Warren Buffett philosophy of being greedy when others are fearful and I’m looking at the current economic uncertainty as an opportunity to buy beaten-up dividend stocks for my long-term portfolio. With that in mind, here’s a look at two bargain FTSE 100 dividend stocks I’d be happy to buy for my portfolio in September.

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Sustainable packaging

Mondi (LSE: MNDI) is a leading international packaging and paper company specialising in sustainable solutions. Fully integrated across the packaging and paper value chain, the group operates in over 30 countries.

Mondi’s share price has fallen from above 1,800p to around 1,550p over the last month as the trade war situation has escalated. Talk of “increasingly challenging trading conditions” in the group’s early August half-year results won’t have helped investor sentiment towards the stock.

Yet the group’s half-year performance was actually pretty good, with profit before tax rising 29% and earnings per share climbing 8%. And the company raised its dividend by an impressive 27%, which suggests to me management is confident about the future.

Given this solid performance, and the fact that the long-term story remains attractive due to the group’s strong focus on sustainable packaging solutions, I think the recent share price weakness has created an attractive buying opportunity.

With the shares currently trading on a forward-looking P/E ratio of just 9.6 and sporting a prospective dividend yield of 4.6%, I think now’s a good time to be building a position in the stock.

Reliable dividend payer

Another FTSE 100 dividend stock I think looks interesting right now is Bunzl (LSE: BNZL). It’s an under-the-radar company specialising in providing businesses with essential items, such as safety equipment, hygiene products, and disposable tableware. The company has a fantastic dividend growth track record, having notched up 26 consecutive annual increases now.

Bunzl’s share price has fallen recently after the group advised in mid-April that growth had slowed in the US. However, half-year results released earlier this week were far from disastrous – revenue increased 4.3% and adjusted profit before tax climbed 2.7%. The dividend was also increased 2%.

In relation to the future, CEO Frank van Zanten said: “Despite continuing economic uncertainties, the Board believes that the combination of our strong competitive position, diversified and resilient businesses and ability to consolidate our fragmented markets will lead to further progress,” which leads me to believe the company can continue growing.

Bunzl shares have often traded at a lofty valuation due to the group’s track record of generating shareholder wealth. However, at present, the shares can be picked up on a P/E ratio of 15.5, with a prospective yield of 2.6%. I think that’s a fair price to pay for this reliable dividend payer.

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Edward Sheldon owns shares in Mondi. 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.