3 reasons why the market crash could be a dividend stock buying opportunity

first_img See all posts by Peter Stephens Image source: Getty Images Our 6 ‘Best Buys Now’ Shares Peter Stephens | Thursday, 9th April, 2020 “This Stock Could Be Like Buying Amazon in 1997” Simply click below to discover how you can take advantage of this. The stock market crash of 2020 could prove to be an excellent buying opportunity for long-term income investors.Certainly, it is likely to cause a significant amount of disruption and challenging operating conditions across many sectors. But it has also pushed yields higher and valuations lower across a wide range of industries.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…With the stock market having a solid track record of recovery from even its very worst bear markets, now could be the right time to buy income stocks and hold them over the coming years.High yieldsPerhaps the first thing that income investors look for in a stock is its yield. At the present time, a number of high-quality businesses have exceptionally high yields compared to their historic levels. This could enable you to capitalise on the stock market’s decline to boost your passive income.Relative to other assets, income stocks appear to have significant appeal. Low interest rates, and the potential for them to fall further as policymakers seek to boost the macroeconomic outlook, may mean that holding cash and bonds becomes even less attractive from an income perspective. They may offer below-inflation returns, while a portfolio of stocks could maximise the income you receive from your capital.Low valuationsThe valuations of a range of companies suggest that they offer capital growth potential. This may not be your priority as an income investor. But being able to build a portfolio which grows in size over the coming years may prove you with an easier task of generating a passive income from which to live in retirement.Furthermore, if you are not yet retired and are seeking to build a nest egg for older age, now could be an excellent opportunity to buy high-quality stocks while they offer wide margins of safety. History shows that adopting such a strategy can lead to high returns in the long run, although there is a risk of ongoing declines in stock prices in the near term. Therefore, diversifying across a wide range of businesses that operate in different sectors is likely to be a shrewd move.Recovery potentialAnother reason to buy dividend stocks today is their potential to recover. This not only means their prospect of recording stock price growth, but also enjoying a return to more stable operating conditions.The world economy has faced numerous crises in its history. They range from financial crises to oil shocks, and from asset bubbles to geopolitical challenges. In each case the global economy has experienced a period of time where growth has been negative. While painful for investors, the world economy has always gone on to post strong growth in the years following its range of crises.At the present time, that outcome may seem unlikely. But, through adopting a long-term focus, you can capitalise on high yields, low valuations and the world economy’s recovery potential. 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. 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. 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! 3 reasons why the market crash could be a dividend stock buying opportunitylast_img

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