Forget gold! I’d invest in dividend stocks today to make a million

first_img Gold has become increasingly popular among investors over recent months. A variety of risks such as coronavirus, geopolitical uncertainty in the Middle East and US political challenges have contributed to many investors becoming increasingly risk averse. As such, they have become more positive about defensive assets such as gold.While in the short run those risks could persist, they may provide a buying opportunity for long-term investors. As such, now could be the right time to avoid gold while it trades at a high price, and invest in undervalued dividend shares. They may increase your chances of making a million in the coming 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…Potential challengesThe impact of coronavirus on the world economy’s growth rate is a known unknown. At the time of writing, investors are becoming increasingly cautious about the near-term outlook for the global economy, with supply chains and consumer demand in many major industries expected to decline in the short run.As a result, many investors may continue to purchase gold. It has a long history of being an effective store of wealth, and has often outperformed other major assets during times of economic distress. This may help to push the gold price even higher in the short run, although this is highly dependent on the ultimate impact of the aforementioned risks which face the world economy.Buying opportunitySimilarly, share prices may continue to fall in the short run. Investors could decide that after a decade-long bull market, now is the right time to take profits on their holdings, which may lead to a depressed period for the stock market.However, in many cases, a deterioration in the performance of the world economy during 2020 may already have been priced in. Across a variety of sectors, many stocks currently trade on low ratings compared to their historic averages, which provides investors with a wide margin of safety. In the long run, this could mean that the potential for capital growth is higher than it normally would be, while high dividend yields may offer an impressive income return at the present time.Income opportunitiesBuying dividend shares right now may offer much more than just a high income return. The past performance of the stock market shows that the reinvestment of dividends has contributed a large proportion of its total return. Therefore, focusing your capital on undervalued income shares could be a sound means of not only boosting your short-term income compared to other assets such as cash and bonds, it may also lead to an impressive rise in your portfolio’s valuation in the long run.Furthermore, investor sentiment has always improved following previous stock market downturns. This time is unlikely to be different, which means that the current popularity of gold may not last over the long run. Therefore, investing in dividend shares could be a better means of seeking to make a million than buying the precious metal. Peter Stephens | Monday, 2nd March, 2020 “This Stock Could Be Like Buying Amazon in 1997” Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Image source: Getty Images. 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. 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 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. Enter Your Email Address See all posts by Peter Stephens Simply click below to discover how you can take advantage of this. Forget gold! 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