A P/E ratio of 10 times and a 6% yield! I’d buy this FTSE 100 dividend stock for my ISA

first_img Image source: Getty Images. It wasn’t a shock to see ITV’s (LSE: ITV) share price balloon following mid-December’s general election. Its move to 13-month peaks above 150p per share reflected the improved near-term outlook concerning Brexit. And it was hoped this would herald a recovery in advertising budgets.What is a bit of a surprise to me, though, is investor appetite for ITV has fallen off more recently. Consequently the broadcaster’s shed 10% of its value since the turn of 2020.5G 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…I believe, though, that this spate of recent weakness represents a top buying opportunity. The outlook for UK advertising spend still looks pretty robust. And recent data on the subject illustrates this point perfectly.Ad budgets to rise again!The Expenditure Report authored by the Advertising Association and marketing research specialist WARC is a much-watched gauge on the health of the domestic ad market. And, fortunately, the latest release leaves broadcasters like ITV with plenty to get excited about.The study suggests total advertising spending in Britain will rise 5.2% in 2020, matching the predicted growth rate for last year. Pleasingly for the broadcasters, television ad budgets are expected to rise 1.7% this year.This suggests conditions are set to improve markedly for ITV and its television rivals.The fallout of the Brexit referendum almost four years ago has hammered business confidence more recently and with it, overall marketing spend. Indeed, previous Expenditure reports showed a 0.1% improvement in annual TV ad spend in 2018. And the current edition suggests budgets actually dropped 0.5% in 2019.VOD squadLast month’s report is particularly encouraging for ITV, given the massive investment it’s made to improve the ‘ITV Hub’ video on demand (or VOD) platform. The Advertising Association and WARC expects ad revenues in this sub-segment of the media arena to rise at a slower pace in 2020 versus previous years. But expectations of a 14.5% year-on-year improvement in VOD ad sales still provides plenty to cheer.ITV is reaping the fruits of improving advertiser budgets already. In quarter three, total ad sales rose 1%, at the top end of its guidance. And this is thanks in large part to the success of ITV Hub. It hit the magic 30m subscriber target a full two years ahead of schedule. In recent months, it’s launched an addressable advertising platform to boost its sales-creating opportunities too.Big dividends at low costBut don’t just think of ITV as a great buy on a strong outlook for ad spending in 2020. Revenues at the ITV Studios division are growing at a handsome pace. And they should keep doing so as the unit’s global footprint expands. On top of this, the launch of the BritBox streaming service in late 2019 adds another layer to its earnings picture for the years ahead.At current prices, ITV sports a forward P/E ratio of just 10.3 times. It’s a reading I consider to be far too low in light of its exceptional long-term growth opportunities. Throw a chubby 6% dividend yield for 2020 into the mix, and I reckon this is one stock worthy of serious attention from dip buyers. Simply click below to discover how you can take advantage of this. 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. Royston Wild | Sunday, 9th February, 2020 | More on: ITV 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! See all posts by Royston Wildcenter_img Our 6 ‘Best Buys Now’ Shares Enter Your Email Address Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended ITV. 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. 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. “This Stock Could Be Like Buying Amazon in 1997” A P/E ratio of 10 times and a 6% yield! I’d buy this FTSE 100 dividend stock for my ISAlast_img read more

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