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This FTSE 100 dividend stock’s crashed 30%! I’d buy it in an ISA today

Tuesday has brought some respite for battered share investors. Hopes of co-ordinated central bank stimulus to fight the coronavirus crisis have helped the FTSE 100 gain 4% in value from last night’s close.

It’s quite possible this could prove to be one of those ‘dead cat bounces’, however. Infection rates are still rising, and the fallout of the OPEC+ group’s disintegration over the weekend is still developing.

Cancellations rise

That said, there’s a number of shares listed on Britain’s blue-chip index I consider too good to miss at current prices. Remember, volatility is a normal part of stock investing. Building a stellar investment portfolio is a long-term business. And there are many Footsie shares whose profits outlook for the next decade and beyond is extremely robust.

Take easyJet (LSE: EZJ). Even taking into account today’s 10% share price bounce, this FTSE 100 flyer’s plummeted almost a third in value over the past two weeks. Mass flight cancellations, rising traveller reluctance and travel restrictions in some countries have seen investors stampede towards the doors.

Italy became the first European nation to impose countrywide coronavirus quarantine measures this week. As a consequence, easyJet, along with other airlines like British Airways and Ryanair, have axed some flights to some parts of the country. Other countries, such as Denmark, have also stopped incoming flights from countries that have been hit hard by Covid-19.

Too cheap to miss?

As I say though, share investors need to think about what the future holds for the likes of easyJet over the long term. And, in my opinion, the future remains extremely bright (and not just on account of its orange branding).

And at current prices, this particular Footsie share looks extremely appealing for patient investors. It boasts a rock-bottom price-to-earnings (P/E) ratio of 10.8 times. And easyJet carries a giant 4.5% corresponding dividend yield too.

Sure, City predictions of an 11% annual profits rise in the current fiscal year (to September) could come crashing down, although sinking oil prices should provide some relief. Irrespective of this, the long-term outlook for the low-cost airline segment remains extremely robust.

A bright future

According to a report by Allied Market Research, the global budget airline market will expand at a handsome compound annual growth rate of 8.6% in the six years to 2023. It will be worth a colossal $207.8bn by then, it estimates, up from $117.7bn in 2016.

As one of the continent’s leading operators, it’s a trend which easyJet is well-placed to ride. Indeed, the flyer remains committed to expansion to capitalise on the bright outlook, and capacity will rise around 3-5% this year alone.

Not all airlines are well equipped to fly through the current coronavirus crisis, as the collapse of FlyBe this month shows. Still, a further thinning out of the market boosts the revenues picture for those left standing, like easyJet. That’s just as the demise of Thomas Cook last year did (easyJet launched its own package holidays division in the aftermath).

It’s possible easyJet’s share price will fall again. However, for brave investors, now could ultimately prove an inspired time to buy in. I’d happily grab its big dividend yields in an ISA right now.

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Royston Wild 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.