A 2020 market crash could be your chance to buy cheap dividend stocks

first_img The stock market has experienced a volatile period over recent months. Risks such as coronavirus, geopolitical challenges in the Middle East and political uncertainty in Europe seem to be weighing on investor sentiment.Those threats could ultimately cause a market crash in 2020. While this may initially seem to be a worry for many investors, the reality is that past downturns have proved to be buying opportunities for long-term investors.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…As such, now could be the right time to buy dividend shares. In many cases, their valuations and yields indicate that investors have factored in the prospect of an upcoming market crash.Potential threatsThe spread of coronavirus is set to contribute to a slowdown in the global GDP growth rate in the near term. Factories in China have been closed in some cases, while global supply chains have been impacted in a number of industries. As such, investor sentiment could worsen in the short run. When combined with risks such as Brexit and political uncertainty in the US in 2020, there seems to be a reasonable chance that the stock market will experience a challenging period in the short run. As a result, investor sentiment has weakened in the past few months, and could continue to do so in the coming months.Buying opportunityWhile it can be difficult to buy shares when their prices are falling and their outlooks are challenging, history suggests that this is the most logical time to buy. The stock market has always recovered from the challenges it has faced in the past. For example, it recovered from recessions such as the global financial crisis, while similar threats to coronavirus such as SARS were followed by the stock market’s return to record highs.As such, investors who can look beyond the short-term volatility present in the stock market may be able to buy high-quality companies while they trade at wide discounts to their intrinsic values. This may improve their risk/reward ratios and enable them to maximise their total returns in the long run.Dividend stocksBuying dividend stocks during a market crash could be a sound means of improving your long-term financial prospects. They may offer high yields due to weak investor sentiment, while in many cases the companies in question could deliver relatively resilient dividend payments despite risks to the global economy.Since a large proportion of the stock market’s past total returns have been generated by the reinvestment of dividends, capitalising on their low valuations during a market crash could be a worthwhile move. It may enable you to build a solid portfolio of dividend shares which can ultimately provide a sustainable and growing passive income in retirement.Therefore, with many stocks currently trading on low valuations that appear to factor in significant difficulties for the world economy, now may be the right time to buy dividend shares and hold them for the long run. Simply click below to discover how you can take advantage of this. Image source: Getty Images 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. A 2020 market crash could be your chance to buy cheap dividend stocks Peter Stephens | Friday, 6th March, 2020 See all posts by Peter Stephens 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! 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. Our 6 ‘Best Buys Now’ Shares “This Stock Could Be Like Buying Amazon in 1997”last_img

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