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Why I’d buy these 2 cheap FTSE 100 dividend shares in an ISA after the stock market crash

The FTSE 100’s recent crash means that many of its members now have relatively high dividend yields. They may be relatively attractive for income investors in many cases – especially with interest rates now being at historic lows.

Of course, the FTSE 100 could yet experience further declines in its price level as news surrounding coronavirus changes. But for long-term investors who are seeking to maximise their income, these two large-cap shares could be worth buying in an ISA today.

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Unilever

Unilever’s (LSE: ULVR) share price has held up relatively well during the recent market crash. It is down by 8% since the start of the year. This is considerably less than the FTSE 100’s 28% decline over the same time period.

However, Unilever’s shares had already experienced significant weakness prior to the coronavirus outbreak. The company reported disappointing results which showed a slower pace of sales growth in many of its markets. For example, its top line increased by just 2.9% for the full year.

The business will increase its focus on innovation, and is seeking to fuel growth through cost reductions. This could help to support its dividend growth, which is expected to be 10% in the current year, and 7% next year.

Unilever’s forward dividend yield of 4.3% could prove to be highly attractive due to its strong growth potential. It may have experienced a challenging period in recent months, but its exposure to emerging markets and its wide range of popular brands mean that it may be a highly desirable income share over the coming years. As such, now could be the right time to buy a slice of it after a poor performance from its share price.

SSE

Another FTSE 100 share that has held up better than many of its peers is SSE (LSE: SSE). The renewable energy business has recorded a 15% drop in its share price since the start of the year.

It now has a dividend yield of around 6.1%. Although there are many FTSE 100 stocks that have higher yields than SSE after the index’s recent fall, the company’s dividend outlook could prove to be highly resilient.

Its performance may be less reliant on the wider economy’s outlook than many of its peers. This may allow SSE to post inflation-beating dividend growth over the medium term, as well as offer a dependable income return relative to its index peers.

Furthermore, SSE’s decision to pivot to renewables could lead to improving financial prospects over the long run. And, with its shares now trading on a price-to-earnings ratio of around 15, they seem to offer fair value for money given the company’s income investing potential. Therefore, the stock could prove to be a robust means of generating a relatively reliable income within your ISA.

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It’s ugly out there…

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Peter Stephens owns shares of SSE and Unilever. The Motley Fool UK owns shares of and has recommended Unilever. 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.