Why I’d buy the BT share price’s 8% yield in this FTSE 100 crash

first_img Our 6 ‘Best Buys Now’ Shares Why I’d buy the BT share price’s 8% yield in this FTSE 100 crash “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. Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Roland Head | Tuesday, 10th March, 2020 | More on: BT-A Image source: Getty Images. center_img See all posts by Roland Head 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. It’s tough in the stock market at the moment. Yesterday saw the BT Group (LSE: BT-A) share price hit levels not seen since the 2009 financial crisis. Today, I want to explain why I think this could be a great buying opportunity for long-term investors.Keep calmI believe it’s times like this that lay the foundations for long-term investing success. In my view, the current sell-off is providing great buying opportunities for investors who can stay focused on the long term.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’ve not sold any shares. And I won’t, whatever happens in the coming weeks. What I am doing is continuing to make regular share purchases with my monthly savings. My belief is that companies which were okay a month ago are still okay now. All that’s changed is that their share price has fallen due to a change in the market mood.Admittedly, some companies could be hit badly by the coronavirus outbreak. But I think BT should be pretty safe. In my view, the current weakness could be a buying opportunity.I like the BT share priceBT may not be the perfect company. It must continually spend money on network upgrades, and carries a rather large pension deficit. At the moment, the rollout of EE’s 5G mobile service and the expansion of the Openreach’s fibre broadband network are placing some pressure on the group’s finances.However, I believe that beneath the surface is a profitable and sustainable business. Last year for example, BT generated an adjusted operating profit margin of 16.4%. The equivalent figure for rival Vodafone was just 11.4%.I believe BT’s top management pairing of CEO Philip Jansen and chairman Jan du Plessis will be able to steady the group’s finances and return the telecoms group to growth.Is now the time to buy?The FTSE 100 slump has seen the BT share price fall to around 125p. The last time BT shares were this cheap was during the 2009 financial crisis.In my opinion, such a low price tag provides an attractive margin of safety. With the shares trading on less than six times forecast earnings, the market is already pricing in a lot of bad news.How safe is the BT dividend?The other big question market relates to BT’s dividend. Based on last year’s payout of 15.4p per share, the stock currently offers a dividend yield of 11.5%. This payout is expected to be maintained for the year ending 31 March.However, BT’s management has signalled a dividend cut may be needed to fund investment and manage the group’s debt levels. City analysts have cut their dividend forecast for 2020/21 to 10.8p per share.This seems sensible to me. A cut will be a disappointment for long-term shareholders who paid a higher price for their shares. But if you’re buying at 125p, a dividend of 10.8p will still provide a yield of more than 8%.I think the sell-off has left BT stock trading at a level which provides an attractive income with a low risk of further losses. I rate the shares as a buy and hope to add to my holding in the coming weeks. 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. Roland Head owns shares of BT GROUP PLC ORD 5P. 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. 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