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I’d invest £2k in these 2 bargain FTSE 100 shares to become an ISA millionaire

The FTSE 100’s market crash has caused many high-quality stocks to fall to levels not seen for many years. As such, now could be a great time to snap up a basket of bargain FTSE 100 shares

Buying such a selection of shares could help you obtain a generous passive income in the long run. These investments could also yield substantial capital gains. 

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Bargain FTSE 100 shares

Shares in consumer goods giant Unilever (LSE: ULVR) have held up relatively well over the past few weeks. It looks as if the company is going to weather the coronavirus storm quite well. Unilever’s bottom line should be protected as it’s one of the world’s largest producers of consumer goods. Indeed, demand for its food and cleaning products is booming.

That suggests the business could generate good returns for investors in the long run. The company has said its dividend is safe for the time being and the stock currently supports a dividend yield of 3.7%. As bargain FTSE 100 shares go, this makes Unilever relatively unique. 

On top of this, shares in Unilever are trading at a price-to-earnings ratio (P/E) of 18.2, which suggests they offer a wide margin of safety at current levels. 

As the company has consistently reported earnings growth above 10%, there’s a good chance an investment in this consumer goods giant could produce double-digit returns every year going forward. A 10% per annum return could be enough to turn an initial investment of £20,000 into £1m within 39 years. 

Asian giant 

Prudential (LSE: PRU) is also on my list of bargain FTSE 100 shares that could help you build a £1m ISA. 

While the outlook for the global economy is far from certain at this stage, China is finally returning to normal. That could be good news for Prudential, which gets most of its business from China and Hong Kong. As the Chinese life insurance market is still relatively underdeveloped, Prudential could generate substantial growth in the long run. 

After recent declines, the stock is currently changing hands at a P/E of 6.8. That multiple suggests the stock offers a wide margin of safety at current levels. Further, the shares also support a dividend yield of 3.4%. 

This level of income, as well as the company’s growth potential, are not the only reasons why this stock could help you build a million-pound ISA. Management is also evaluating the potential disposal of Prudential’s US business. 

It’s not possible to tell how much this business could be worth, but some analysts believe a valuation of several billion pounds is acceptable. This isn’t currently reflected in the group’s valuation and suggests the stock is deeply undervalued at current levels. This is why Prudential stands out on my list of bargain FTSE 100 shares. 

As such, in the long run, it’s highly likely this company can generate high total returns as it capitalises on its position in Asia’s life insurance market.

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Rupert Hargreaves owns shares in Unilever and Prudential. The Motley Fool UK owns shares of and has recommended Unilever. The Motley Fool UK has recommended Prudential. 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.