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I see these FTSE 100 dividend stocks as ‘screaming’ buys right now

Due to the high level of economic uncertainty associated with the coronavirus outbreak, the FTSE 100 has tanked in recent weeks. As I write, the index is at 5,560 points, a long way below the 7,500 level it was trading in February.

In my view, this crash has thrown up a number of compelling investment opportunities. Here’s a look at three FTSE 100 dividend stocks I believe are screaming buys right now.

Legal & General

The first opportunity is Legal & General Group (LSE: LGEN). Its share price has fallen from around 320p in mid-February to just 203p today. That’s left the stock trading on a forward-looking P/E ratio of just six and sporting a prospective dividend yield of 9%. Those metrics look very attractive to me.

LGEN’s recent full-year results were very good. Operating profit from continuing operations rose 17%, while earnings per share climbed 16%. Meanwhile, the company increased its dividend by 7% – its 10th consecutive increase. The company said it remains confident in its ability to deliver future growth. CFO Jeff Davies also stated that the group has “very little” exposure to the coronavirus.

With LGEN shares now trading at a rock-bottom valuation and offering a huge yield, I think now is a great time to be buying. 

Schroders

Another FTSE 100 stock that’s been beaten up recently and now appears to offer considerable value is investment manager Schroders (LSE: SDRC). I particularly like the non-voting shares, as they’ve a higher yield than the voting shares.

In mid-February, SDRC shares were changing hands for 2,600p. Now, however, you can pick them up for around 1,830p. At that price, the forward-looking P/E ratio is just nine and the prospective yield on offer is 6.3%.

Schroders recently issued a rather underwhelming set of full-year results. For the year, profit before tax fell 4%, while basic earnings per share before exceptional items declined 7%.

Looking ahead though, I believe the firm has the potential to deliver long-term growth. Not only has the group recently made structural changes to increase its focus on wealth management, but it has also recently made a key acquisition in the impact investing space. Additionally, the group should benefit as global stock markets rise in the long run.

With the shares down significantly over the last few weeks, I believe now’s a great time to snap up a slice of this high-quality business.

Sage

Finally, I really like the look of accounting solutions specialist Sage (LSE: SGE) right now. Its shares were trading near 800p in February. Now they can be picked up for around 595p. At that price, the forward-looking P/E ratio is about 20 and the prospective yield on offer is around 2.9%.

For a company of Sage’s quality (the group is highly profitable, has a strong balance sheet, and has a strong competitive advantage), I think that valuation and dividend yield is a steal.

Sage should be relatively well insulated from the impact of the coronavirus. While businesses may cancel their employees’ travel plans as a result of the outbreak, they’re unlikely to cancel their accounting systems.

Interestingly, CEO Steve Hare bought 5,000 Sage shares last Friday, which suggests he expects the stock to rebound. This leads me to believe that buying the shares now, while the market is down, could be a rewarding move in the long run.

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Edward Sheldon owns shares in Sage, Schroders (non-voting), and Legal & General. The Motley Fool UK has recommended Sage Group 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.