Forget gold. I’d buy bargain dividend stocks today to get rich and retire early

first_img Image source: Getty Images. Peter Stephens | Tuesday, 9th June, 2020 Forget gold. I’d buy bargain dividend stocks today to get rich and retire early Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. 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. The recent stock market crash may have caused many investors to doubt the appeal of dividend stocks. After all, their prices declined significantly in a very short period of time. Looking ahead, further falls in the stock market wouldn’t be a major surprise due to the ongoing risks posed by coronavirus.However, stocks could still be a better long-term investment than gold. They’ve low valuations, high yields and recovery potential. As such, buying a range of dividend stocks today and holding them for the long run could be a sound means of improving your chances of retiring early.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…Gold’s risksWhile dividend stock prices may have come under severe pressure in 2020, the popularity of gold has increased significantly. The precious metal has reached a seven-year high. What’s more, it could experience rising demand among investors should the prospects for the world economy continue to be uncertain over the coming months.However, over the long term, gold may lack total return potential. Its high price could indicate there’s limited scope for capital growth compared to undervalued stocks. Furthermore, investor sentiment is likely to recover from the low levels experienced this year as the outlook for the world economy improves. This has taken place after every previous bear market. So that could mean the appeal of defensive assets such as gold decreases as investors become less risk averse.Stock returnsImproving investor sentiment could lift dividend stock prices over the long run. This could help to improve your retirement prospects through producing a larger nest egg from which to generate a passive income in older age.Of course, a sustained rally in stock prices may seem highly unlikely at present. But in every previous bear market there have been moments where the outlook for equities and the world economy have been exceptionally downbeat.Yet the stock market has produced a recovery from every downturn it’s experienced. Investors who’ve purchased stocks while they’re undervalued during such periods have generally experienced strong returns in the bull markets that have always followed bear markets.The appeal of dividend stocksDividend stocks could be highly attractive for investors who are aiming to build a retirement nest egg over the long run. Reinvesting dividends has historically accounted for a large portion of the stock market’s total returns. Therefore, companies that trade on high yields could appeal to growth investors and not just income-seeking investors.Through purchasing companies that have generous dividend cover (which is calculated by dividing net profit by dividends paid), it’s possible to obtain a relatively robust passive income stream that can be reinvested over the coming years.This strategy may lead to higher returns that ultimately help you to reach your goal of retiring early. See all posts by Peter Stephens Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! “This Stock Could Be Like Buying Amazon in 1997” Enter Your Email Address 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.last_img

Leave a Reply

Your email address will not be published. Required fields are marked *