The stock market crash is making your FTSE dividends work even harder

first_img “This Stock Could Be Like Buying Amazon in 1997” Harvey Jones | Wednesday, 25th March, 2020 Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! 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. See all posts by Harvey Jones Our 6 ‘Best Buys Now’ Shares Harvey Jones 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. 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.center_img Image source: Getty Images. During a stock market crash, there are plenty of reasons why investors shouldn’t panic. The first is that investing is a long-term game. If you sell your FTSE holdings at the first sign of trouble, you’ll never build a decent pot of wealth for your retirement.Selling the FTSE today would be a disaster, because then you’re locking in all of your losses from the stock market crash. Worse, you then face the tricky decision of when to buy back into the market, and you’ll almost certainly leave it too late. You might even re-enter at a higher point than you sold, and you don’t want to do that.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…There’s another reason why you should stick it out during a stock market crash. Dividends. Although many FTSE companies are scrapping their payouts amid current uncertainty, your income may hold up and here’s why.Stock market crash boosts yieldsOthers are continuing to pay out, judging by the latest quarterly report from one of my holdings, an index-tracking unit trust called HSBC FTSE All-Share Index.I’ve got a few thousand pounds in there, and it gives me a regular flow of dividends, which I reinvest back into the fund. This is how investors make real money over the years, by reinvesting dividends, that buy more stock or units, which pay more dividends, in an endless virtuous circle.Dividends are the unsung heroes of investing. They work especially hard during a stock market crash.Markets down, wealth upThanks to them, investors make money even when stock markets fall. For example, on 31 December 1999, the FTSE 100 peaked at 6,930. It actually ended 1998 trading 2.9% lower (and is lower still today). However, with reinvested dividends, investors would still have made a gain of 81.3% over that 19-year period.Most will have done a lot better than that, because they continued to invest when the market was much cheaper. That means they’ll have picked up stock at much cheaper prices, and generated more dividends as a result.This is why you should stay invested in the FTSE during and after a stock market crash. That’s because your regular dividends are picking up more stock or units at the lower price, and will be worth even more when markets rebound. Investing in new money will help even more.Dividend heroI’ve just had an email from my online investment platform, which sets out how this works in practice. In January, before the crash, HSBC FTSE All-Share Index paid me £69.06, which reinvested bought me 10.62 fund units. Yesterday, it paid me another £69. But thanks to the stock market crash, that now bought me 15.33 units. That’s roughly 50% more. And it’s happening across my investment portfolio, not just this one fund. There’s another way of stating this. Last year, the FTSE 100 typically yielded around 4.25%. Right now, it yields 6.6%. This may fall due to all of those dividend cuts, but investors should still come out on top.Provided they stick it out… Simply click below to discover how you can take advantage of this. Enter Your Email Address The stock market crash is making your FTSE dividends work even harder 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 read more