The 2020 stock market crash provides a great opportunity for FTSE 100 investors to supercharge their investment returns.
The question of whether or not to use market crashes to buy UK shares can often mean the difference between just making decent profits from your shares portfolio and making a million. Just ask the growing number of Stocks and Shares ISA millionaires.
Buying on the dips allows you to load up on cheap-but-quality shares and then watch them rise in value over the long run. There’s an abundance of great dividend stocks on the FTSE 100 alone that I reckon are terrific buys at current prices too. Speaking of which…
5%-plus dividend yields
I believe loading up on FTSE 100 precious metals producer Polymetal International (LSE: POLY) is a great way to get rich during the 2020s.
Gold’s recently struck new nine-year peaks above $1,800 per ounce on growing fears of a prolonged economic downturn.
The World Gold Council has hit the nail on the head, saying: “There is a growing consensus that a swift V-shaped recovery is morphing into a slower U-shape recovery or, more likely, the possibility that a recovery in the second half is short lived as recurring waves of infections set the global economy back, resulting in W-shaped recovery.”
A tough economic landscape is likely to keep gold demand well bought over the next year or two at least. And there are plenty of other macroeconomic and geopolitical issues that will likely drive bullion prices higher beyond then. Rising inflationary fears and concerns over the value of paper currencies, as central banks maintain loose monetary policies, is one of them.
So buy shares in Polymetal International to ride this phenomenon, I say. The soaring gold price means this share hasn’t fallen in value during the stock market crash. This FTSE 100 stock still looks cheap right now. However, the Russian digger carries a forward P/E ratio of just 11 times. Combined with a bulky 5.2% dividend yield, I reckon this is one possible millionaire-maker you should buy today.
A 6.5% FTSE 100 yield!
Dividend investors chasing a bargain should think about buying Vodafone Group (LSE: VOD) shares right now too. A prospective P/E ratio of 19 times isn’t much to write home about. However, a monster 6.5% dividend yield is.
The FTSE 100 telecoms giant has fallen 20% in value during the past six months. Understandably, investors are worried about how a severe economic cooldown will affect demand for Vodafone’s product.
But City analysts aren’t predicting a sudden fall-off in annual profits. Instead, they reckon earnings will rise 34% and 29% in this fiscal year and next respectively.
Such forecasts reflects the telecoms sector’s position as a classic safe-haven. The likes of Vodafone can look forward to strong recurring revenues, whatever broader economic conditions are like. But this robustness isn’t the only reason I’d buy this FTSE share today. I also like the brilliant revenues opportunities that 5G rollout will create over the next decade.
The most successful investors use stock market crashes to buy bargains. This is why I’d buy Vodafone and Polymetal, along with some other choice blue-chips today.
Markets around the world are reeling from the coronavirus pandemic…
And with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.
But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be daunting prospect during such unprecedented times.
Fortunately, The Motley Fool is here to help: our UK Chief Investment Officer and his analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global lock-down…
You see, here at The Motley Fool we don’t believe “over-trading” is the right path to financial freedom in retirement; instead, we advocate buying and holding (for AT LEAST three to five years) 15 or more quality companies, with shareholder-focused management teams at the helm.
That’s why we’re sharing the names of all five of these companies in a special investing report that you can download today for FREE. If you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio, and that you can consider building a position in all five right away.
Royston Wild has no position in any of the shares mentioned. 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. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.