first_imgFTSE 100 crash: I’d buy dirt cheap dividend shares today to make a million Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Our 6 ‘Best Buys Now’ Shares Simply click below to discover how you can take advantage of this. See all posts by Anna Sokolidou Anna Sokolidou | Tuesday, 26th May, 2020 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. 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.center_img Image source: Getty Images. Anna Sokolidou does not have any position in any of the companies mentioned in this article. The Motley Fool UK has recommended Carnival. 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. Good value investors do not panic when stock indexes crash. They embrace these situations and benefit from them. Clearly, you can hardly make a fortune overnight. But then, you normally have to be patient to make a million. In my view, cheap dividend shares are a safe and reliable way to retire early. FTSE 100 crashThe Covid-19 crisis may continue for some time. There is also a high risk of a ‘second wave’. We’ve all heard that a vaccine will not likely be ready until the end of 2021. Meanwhile, the economic recession in the UK is the sharpest one on record. It all looks quite grim. Nevertheless, the current downturn could be an excellent opportunity to start investing.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…It seems to me that the FTSE 100 is undervalued despite having rebounded slightly from the lows reached in March. As my colleague Peter Stephens pointed out, investing £500 each month could leave you with £1m after 35 years. This is because the average return of the FTSE 100 is about 8% per year. I agree that it is a sound way of investing.However, I would recommend investing larger sums of money during downturns, if you can. Recessions are cyclical in nature. Likewise, a stock market crash cannot last forever. The FTSE 100 has a very good recovery history. I’d personally invest more during downturns and less during stock market booms. This would allow you to achieve even better results.Cheap dividend sharesThe easiest way to invest in the FTSE 100 is buy an index that tracks its performance. Many of them pay dividends. The FTSE 100 average dividend yield is about 4%. This sounds attractive.But there is another way to invest that could help you outperform the Footsie. It simply involves excluding the ‘worst’ companies from the benchmark and distributing your money among the ‘best’ companies.What do I mean by this? Well, loss-making companies can be excluded straight away. Indeed, if things get better and these companies become profitable again, investors can make a substantial profit too. However, they tend to go bankrupt much more often than profitable companies do. So, they normally drag the stock index down. Such companies also have a highly uncertain outlook. Carnival Corporation seems to be an example of such a company.It’s also a good idea to avoid highly overvalued companies. It is easy to spot them by their high price-to-earnings (P/E) ratios. Sometimes, you don’t even have to calculate a firm’s P/E ratio. It is often enough to look at the share price graph. If a company’s stock has appreciated dramatically, it is most probably not a bargain anymore. Ocado is a fantastic example of this. It doesn’t have a good earnings history, but the stock has surged because of the hype surrounding delivery services.Obviously, buying cheap dividend shares also suggests investing in companies that have a good dividend record. It means that a company must have a long history of paying dividends. Moreover, the company has to raise dividends every year.Finally, I’d suggest investing in larger companies. The size of an enterprise can be judged according to its sales revenue and market capitalisation. Larger companies usually offer more stability than smaller companies do.I think many companies in the FTSE 100 fit such criteria and will allow you to make a million much earlier than an index fund. Enter Your Email Address 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. “This Stock Could Be Like Buying Amazon in 1997”last_img

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