The stock market has been very volatile because the good news and bad news about the global sickness. I will be sharing a example of a great stock to invest in during the stock market crash depending on your risk tolerance, also I will be sharing whether I’m going to invest more in dividend stocks or in growth stocks.
First I’m going to answer if I will be investing in a little higher risk growth stocks or safe dividend stocks. I personally can handle a little risk so I will be investing in growth stocks more than dividend stocks. In the next paragraphs I will show you why.
One example of a stock I am buying a lot of is Carnival Cruise line stock ticker symbol CCL . CCL stock dropped from a high of around 60 to a low just a few weeks ago of 7.80. This stock has raised enough capital to survive 12 months or even more. I think that this will keep them alive, as cruises are expected to bounce back nicely in 2021. The risk of them going bankrupt is around 10% in my opinion.
I am very bullish on CCL stock because the risk to reward is very attractive. The stock if it survives will give huge returns of 400% or higher if you bought at a lower price. I believe if you hold this stock for 7-10 years you will see it trading near 70 again. The companies earnings and revenue will not go back up to normal levels automatically, but in 2-3 years we might see close to were the numbers were last year.
These growth stocks bring such high rewards that the risk almost seems non existent. This is my personal opinion and before you invest in this stock, please do your own research. Look at all the news about how much cash CCL is burning compared to how much money they have available.
In conclusion, for someone that can take on a little risk I believe growth investing is better than dividend investing in the 2020 stock market crash. There are different factors that you should think about before investing in either of these categories.