These 2 cheap FTSE 100 shares pay strong dividends. Here’s why I’d buy them today

first_img Tom Rodgers has no position in 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. Image source: Getty Images See all posts by Tom Rodgers These 2 cheap FTSE 100 shares pay strong dividends. Here’s why I’d buy them today “This Stock Could Be Like Buying Amazon in 1997” I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Our 6 ‘Best Buys Now’ Sharescenter_img Enter Your Email Address Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Simply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Since 10 March 2020, FTSE 100 companies have been trimming, slashing, or scrapping their dividend payments entirely. Thankfully, there are well-run companies with plenty of cash to spare that are still paying out.And the stock market crash means these businesses are cheaper to buy than they have been in years.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…Confidence is creeping back into markets. The FTSE 100 touched 6,000 recently after the epic lows under 5,000 in mid-March. While markets are recovering, there are still cheap shares that I think are too good to ignore.Cheap FTSE 100 starsThe two I’ve chosen are highly diversified multinationals. To me this means they have the best shot at coming out of a stock market crash in the best possible shape.The UK’s best fund managers — the Terry Smiths and Nick Trains of this world — tend to favour these kinds of companies because they offer reliable long-term ways to gain. Either through steady share price appreciation or through gently increasing dividends, or both.Johnson Mathey (LSE:JMAT) is a specialist chemicals company. It’s one of those ones that has been far too expensive to buy in previous years. But now after the stock market crash it’s at an attractive price-to-earnings of 8. That makes these very cheap FTSE 100 shares in my book.Johnson Mathey pays a 4.2% dividend at the moment, which I think will continue to grow in future. It has, very steadily, been growing its dividends per share. Management are extremely careful about cash preservation. In 2017 it paid 75p per share for just a 2.4% yield. The year after, 80p, and in 2019, 85p. All with hefty dividend cover of 2.6 times earnings or more.Overall profits leapt from £320m to £448m in the past two years.In terms of products, it makes steady revenue from chemical agents like absorbents and additives, medical device components, surface coatings, and emission control technologies.But the best prospects for really big gains in the future come from its alternative renewable fuels and battery metals divisions. It is working on ultra-high energy density cathode materials. These will power the rapid growth in electric vehicle and battery technologies. The growth in the sector is slated to come not just from consumer cars but service vehicles in municipal fleets, aircraft, and military vehicles.For investors seeking truly long-term cheap FTSE 100 shares, I think this one is a no-brainer.Dig deeperMinerals and mining giant Anglo American (LSE: AAL) might be best recognised as the company that bought out the Woodsmith polyhalite mining project once run by disgraced Sirius Minerals. But it has operations all over the world. In copper mining, in diamonds, in South Africa, in Botswana – it is hugely diversified.And these are cheap FTSE 100 shares, that’s for sure. They come with a price tag that’s more affordable than they have been for years. The P/E ratio right now is just 6, while the company boasts a healthy dividend yield of 5.6%.CEO Mark Cutifani has said that “most of our sites around the world are continuing to operate“, in response to Covid-19. And making £500m of cost savings and spending $1bn less on its 2020 programme gives the company a “robust” liquidity position of $14.5bn.Its net debt may put some investors off, but it has been steadily reducing its leverage in the last five years and it looks very buyable to me. Tom Rodgers | Monday, 18th May, 2020 | More on: AAL JMAT last_img

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