Why I Plan To Buy This Fast Growing Recession-Proof Blue-Chip

Posted On February 14, 2019 9:40 am
By: Dividend Sensei

Today this fast-growing blue-chip offers 11% to 12% return potential, but at the right price much more. Find out why I plan to buy it, but more importantly at what price it’s likely to turn into an even better market smashing success.

Summary

My Deep Value Dividend Growth Portfolio is always looking for the best low-risk dividend growth ideas, including those in recession-proof industries.
The pharma industry is a solid defensive source of stable and growing income, BUT due to its high risk profile, I only recommend dividend blue-chips.
Merck is one of my favorite drug makers due to its blockbuster oncology drugs like Keytruda, with more on the way due to a strong drug pipeline.
Unfortunately, Merck is about 5% to 8% overvalued and thus new investors should wait to buy at $71 to $75 (I’m waiting for $67).
From today’s price, Merck is likely to deliver about 11% to 12% long-term total returns, but I’m personally looking for 13% and thus have it watchlisted.

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Photo: “Buy Key” by Got Credit is licensed under CC BY

About author

Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I'm a proud co-founder of Wide Moat Research, Dividend Kings, and the Intelligent Dividend Investor. My work can be found on Seeking Alpha, Dividend Kings, iREIT, and the Intelligent Dividend Investor. My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives. With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams and achieving long-term financial goals.