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I’d buy these two FTSE 100 stock market crash bargains now

Buying cheap FTSE 100 shares after the UK stock market crash could help investors generate a high return over the next few years.

Indeed, while the index has suffered several periods of bad performance in the past, it’s always been able to overcome these setbacks, and then go on to post substantial gains.

Therefore, now could be the perfect time to buy cheap FTSE 100 shares, such as the two businesses discussed below.

Stock market crash bargains

Those who held an investment in retail giant J Sainsbury (LSE: SBRY) suffered significantly in the recent stock market crash. Shares in the supermarket chain have fallen around 15% year-to-date.

However, the group now yields around 5.3%, due to its weak share price performance over the last few months. This is higher than many of the company’s FTSE 100 peers. That suggests the stock could be an excellent income investment in the current environment.

Unlike many of its FTSE 100 peers, its designation as an essential retailer allowed Sainsbury’s to remain open throughout the coronavirus lockdown. Unfortunately, the company’s costs rose significantly during this period. It increased spending to protect staff and meet higher levels of demand. But government efforts to stimulate the economy (tax breaks) may offset some of these higher costs.

As such, it looks as if the company may escape the coronavirus crisis relatively unscathed. After the stock market crash, investor sentiment towards the business is relatively downbeat at the current time. This suggests that now could be the opportune moment to buy a share of this high-quality business and its market-beating dividend yield.

Legal & General Group

Another FTSE 100 share that could produce high long-term total returns is Legal & General Group (LSE: LGEN). Factors such as falling interest rates and the stock market crash have dented investor sentiment towards this FTSE 100 dividend champion this year.

Despite this, the company’s underlying fundamentals look strong. Its recent trading update noted that assets under management had increased to £1.23trn at the end of May. They were £1.14trn at the end of March.

The shareholder solvency ratio, a measure of financial company balance sheet strength, is expected to fall in a range of 162-167%. That’s only a slight year-on-year deterioration in the company’s financial position.

As such, with the shares having fallen by nearly 30% in the stock market crash, the shares could offer a margin of safety at current levels.

On top of this, shares in Legal & General offer investors a dividend yield of around 8%. Unlike many of the company’s peers, which have cut or suspended their dividend payouts, L&G’s management seems to be committed to the distribution for the time being. That’s a big positive for income investors.

So, overall, now could be the perfect time to buy a slice of this FTSE 100 dividend champion. It appears to offer a wide margin and a high single-digit dividend yield.

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Rupert Hargreaves 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.