How I’d invest £10k in this FTSE 100 stock market crash to make a passive income

first_img “This Stock Could Be Like Buying Amazon in 1997” The FTSE 100’s crash has caused the index’s dividend yield to spike to its highest ever level of around 6%. But there is a problem facing investors. Many of the index’s members either have, or are likely to, cut their dividend payments in response to an uncertain economic outlook.As such, making a passive income may be relatively challenging in the short run. In the long term though, there appear to be numerous opportunities to benefit from the FTSE 100’s recent crash. That is because many dividend stocks trade on attractive valuations and offer recovery potential. Investing £10k, or any other amount, in them could yield an appealing passive income.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…Short term/long termIn the short run, a number of FTSE 100 companies are unlikely to reduce their dividends by a significant amount. They include defensive stocks for which an economic downturn should not have a significant impact on their financial performance. True, they may not be among the highest yields on offer. But companies operating across the utility sector and in sectors like tobacco are likely to produce high income returns in the coming months.Over the long term, the economy’s track record suggests that a recession is unlikely to last in perpetuity. Moreover, the economy has successfully moved from recession to a period of positive growth following every previous downturn.This could mean FTSE 100 dividend stocks that have cut their dividends in recent weeks go on to reinstate them. And they could offer strong dividend growth in the long run. Their prices trade at low levels today, in many cases at levels not been since the last global recession. So there could be buying opportunities for investors who do not require a passive income in the short run.Portfolio potentialOf course, buying a small number of FTSE 100 shares to generate a passive income is not a good idea even during more benign market conditions. Building a portfolio containing a diverse range of stocks that operate in different industries and regions is likely to reduce your overall risks. This can also enhance your dividend growth opportunities in the long run.Furthermore, purchasing the market leaders in a specific industry could be a means of successfully navigating the economic challenges that may be ahead. Companies with dominant market positions may have wider economic moats that increase their chances of survival. They may even be able to extend their market share to strengthen their potential to raise shareholder payouts in the coming years.Relative volatilityInvesting in FTSE 100 shares today for a passive income is likely to be a more volatile experience than holding cash, bonds or other income-producing mainstream assets. However, the FTSE 100’s crash means that many dividend stocks now offer excellent value for money. That means they could provide an attractive passive income in the long run. Image source: Getty Images. Peter Stephens | Monday, 13th April, 2020 | More on: ^FTSE Enter Your Email Address Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge! Simply click below to discover how you can take advantage of this. See all posts by Peter Stephenscenter_img 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 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. How I’d invest £10k in this FTSE 100 stock market crash to make a passive income Our 6 ‘Best Buys Now’ Shares Peter Stephens has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. 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