How high-yield dividend stocks can help an investor to retire rich

first_imgHow high-yield dividend stocks can help an investor to retire rich 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. 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. High-yield dividend stocks could offer much more than just a generous passive income. Reinvesting dividends could lead to a growing retirement portfolio that provides a worthwhile income in older age.Furthermore, the low valuations on offer across the stock market and the potential for rising demand for high-yield opportunities may help to lift share prices. This may produce capital growth that improves an investor’s retirement outlook.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…Reinvesting a passive income from dividend stocksDividend stocks could offer an attractive total return in the long run. A large proportion of the stock market’s past total returns have been derived from the reinvestment of dividends. Therefore, dividend shares may be of interest to a wider range of investors than just those individuals who are seeking a passive income today.In fact, the stock market crash has caused many income shares to trade at low prices. This means that they offer high yields in many cases. As a result, they could provide scope to reinvest significant sums of capital in the stock market on a regular basis. Over time, this could lead to a growing portfolio that improves an investor’s retirement prospects.Low valuations after the stock market crashThe 2020 market crash also means that dividend stocks could offer capital growth potential. In some cases, they trade at low prices due to uncertain near-term operating outlooks that could negatively impact on profitability. However, some income stocks with low valuations have the financial strength and strategies to overcome their short-term risks so that they can deliver improving profitability over the long run.Therefore, investors who identify financially sound businesses today while they trade at low prices could benefit from a long-term stock market recovery. With indexes such as the FTSE 100 having always returned to previous highs after their various bear markets, the long-term turnaround prospects for undervalued high-yield income shares appear to be relatively bright.Increasing demand for income sharesDividend stocks may also deliver strong capital growth that boosts an investor’s retirement prospects because of a lack of other passive income opportunities. For example, low interest rates mean that the returns on cash and bonds are relatively low. Their returns may even fail to keep pace with inflation over the long run. Similarly, high house prices may mean that the yields on property investment are somewhat disappointing relative to income shares.This could mean that demand for income shares increases over the coming years. The end result could be rising prices for income shares that produce capital gains for their holders. As such, now could be the right time for investors to build a diverse portfolio of dividend shares that offer good value for money and solid financial positions. They appear to have the potential to produce a retirement portfolio that can provide a generous passive income in older age. Simply click below to discover how you can take advantage of this. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Peter Stephens | Thursday, 12th November, 2020 “This Stock Could Be Like Buying Amazon in 1997” See all posts by Peter Stephens Enter Your Email Address Our 6 ‘Best Buys Now’ Shares Image source: Getty Images. last_img read more