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Have £1,000 to invest? I’d buy these 2 bargain FTSE 100 shares in this stock market crash

The FTSE 100’s recent market crash and subsequent rebound may leave many investors feeling uncertain about the index’s future. After all, a global economic recession seems highly likely in 2020. And this could hurt the FTSE 100’s price level in the short run.

However, the valuations of many large-cap shares suggest that they offer long-term growth potential. As such, now could be the right time to invest £1,000 in these two FTSE 100 shares as part of a diversified portfolio that has a long-term focus.

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The recent update by renewable energy business SSE (LSE: SSE) bucked a wider trend among FTSE 100 dividend stocks. The company announced that it will pay a dividend for the most recent financial year, and also plans to pay the dividend as expected for the current financial year.

This could increase demand among income investors for the company’s shares. That is especially so as many of its large-cap peers have announced dividend cuts or delays due to the economic impact of the coronavirus.

Of course, SSE stated in its update that it is too early to determine to the overall impact of coronavirus on its financial performance. However, it has a business model that may be less closely correlated with the economy’s outlook than is the case for many of its FTSE 100 peers. As such, it may offer defensive appeal at an uncertain time for the world economy.

With SSE offering a dividend yield of 6.5%, it seems to offer a margin of safety at its current price level. It plans to raise dividends by at least as much as inflation over the coming years. This could mean that it produces a relatively strong total return following the recent market crash.

FTSE 100 beverages company Diageo

Another FTSE 100 share that could offer long-term growth potential is alcoholic beverages company Diageo (LSE: DGE). Its share price has fallen by around 13% since the start of the year. And this could mean that it offers relatively good value for money.

Clearly, the company is likely to be affected by the impact of the coronavirus. The closing down of pubs, bars and restaurants across many of its key markets means that demand for its products is likely to have fallen. However, with a strong balance sheet and loyal customers across its range of brands, it seems likely to enjoy a strong recovery in the coming years.

As such, now could be the right time to buy Diageo as it has a solid position in emerging markets, as well as an enviable range of popular brands in established markets. Its plans to conserve cash in the short run may aid its capacity to not only survive the present economic difficulties facing the world economy, but to emerge from them in a stronger position compared to its sector peers.

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