Covid-19: why hard-hit dividend stocks could make you a fortune in 10 years

first_img Our 6 ‘Best Buys Now’ Shares “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address 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. Covid-19: why hard-hit dividend stocks could make you a fortune in 10 years Many dividend stocks have experienced difficult trading conditions over recent months. Covid-19 is an unprecedented crisis that has produced a challenging outlook for a wide range of businesses. This may dissuade many investors from buying high-quality companies at the present time.However, rising demand for income shares due to low interest rates and a probable economic recovery suggest that now could be the right time to purchase a diverse range of dividend stocks. They could produce high total returns that make you a fortune over the next 10 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…Rising demand for dividend stocksDemand for dividend stocks may not be especially high at the present time. After all, risks such as trade tensions between the US and China, as well as the prospect of a second wave of coronavirus, could cause difficult trading conditions for many industries and businesses.However, companies that maintain shareholder payouts in the medium term may experience high demand from income-seeking investors. They are unlikely to have a great deal of alternative options available in an era where low interest rates are set to remain in place. For example, investors who would have relied on bonds or even cash in the past to generate a positive real income may focus their capital on dividend shares in the coming years.Rising demand for income stocks could mean that their prices rise. As such, as well as their income opportunities, they may produce high capital returns that boost your portfolio’s prospects in the next decade.Economic recoveryBuying dividend stocks while an economic recovery is uncertain could be a sound move. At the present time, weak GDP growth could cause many investors to doubt the capacity of the global economy to bounce back from its recent difficulties. This is an understandable view, and is often present during bear markets and recessions.However, the past performance of the world economy shows that it has always recovered to produce improving growth after even its most severe difficulties. This time, major stimulus packages have been announced across many large economies such as the US and in Europe. They could catalyse the trading conditions for a wide range of companies that leads to rising profitability and a greater capacity to pay improving dividends in the coming years.Capitalising on a recoverySince it is difficult to ascertain which industries will produce the quickest and strongest recovery from present economic challenges, buying a diverse range of dividend stocks could be a shrewd move. By spreading the risk across a number of companies, you can limit your exposure to a concentrated few businesses and benefit from the likely growth of the wider economy. This strategy could boost your portfolio’s performance and improve your financial position over the next decade. 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.center_img See all posts by Peter Stephens Simply click below to discover how you can take advantage of this. Peter Stephens | Saturday, 18th July, 2020 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. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!last_img

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