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The FTSE 100 has tanked. I’d buy these 2 dividend shares in a Stocks and Shares ISA today

The FTSE 100’s recent fall means that there could be an increasing number of good value dividend shares on offer for long-term investors.

Certainly, the index may fall further in the short run. Investors may, therefore, experience paper losses in the coming months. That depends on how the spread of coronavirus continues, of course.

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However, in the long run these two FTSE 100 shares could offer impressive capital returns as well as high yields. As such, buying them today could be a shrewd move.

Kingfisher

The recent financial performance of retailer Kingfisher (LSE: KGF) has been very disappointing. For example, its most recent trading update showed that the vast majority of its geographical locations recorded a decline in sales. This led to the business reporting a 3.2% drop in its top line.

In the short term, further falls seem to be highly likely. Spending on non-essential items such as home improvement products could fall as the global economic growth rate comes under pressure. As such, it would be unsurprising for Kingfisher to experience challenging trading conditions.

However, this outlook appears to have been priced into the company’s valuation. It trades on a price-to-earnings (P/E) ratio of just 9. And its dividend yield stands at over 6%, covered twice by net profit.

With a new CEO at the helm who is set to focus on improving the operational delivery of the business, the long-term prospects for Kingfisher could improve. For investors who can overcome potential challenges in the short run, the stock may deliver an impressive total return over the coming years.

BT

Another FTSE 100 company that faces an uncertain near-term outlook is BT (LSE: BT.A). Its financial performance has disappointed over the past few years. And its latest quarterly results provided more evidence of this.

For example, its financial performance in the third quarter of the year has been below its previous expectations. Its revenue declined by 2%, while pre-tax profit moved 5% lower.

In the current financial year, its bottom line is forecast to decline by 12%. But investors, appear to have factored in its challenging financial outlook. BT’s shares currently trade on a P/E ratio of just 5.5. They also offer a dividend yield of 8.4%, which assumes that the company’s dividend payout is reduced by around a third in the next financial year.

Clearly, there are better-performing companies available to buy in the FTSE 100 at the present time. But with such a low valuation and a high yield that is expected to be covered more than twice by net profit next year, BT could be a value and income investing opportunity.

It may offer recovery potential over the coming years as it continues to invest in 5G and in improving customer service across its business.

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Peter Stephens 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.