2 Dividend Blue Chips Set To Soar And 1 Yield Trap To Ignore

2 Dividend Blue Chips Set To Soar And 1 Yield Trap To Ignore

Posted On March 7, 2019 11:10 am

Deep value dividend investing requires being able to tell the difference between coiled spring companies set to soar, and dangerous yield traps you should ignore.


  • Deep value dividend growth investing, when done correctly, can be an awesome way to compound both your income and wealth over time.
  • But that requires being able to recognize the difference between quality deep value opportunities and yield/value traps that are cheap for a reason.
  • Kraft, CVS, and Walgreens are all famous blue chips that have been crushed recently, but just two of these dividend stocks are good buys, while the other should be avoided.
  • Kraft’s core business has eroded, its profitability has plunged, and management’s acquisition and cost-cutting strategy has failed, making it a dangerous yield trap to avoid.
  • CVS and Walgreens face their own challenges, but each offers safe dividends and far stronger growth and total return potentials, especially at today’s very low valuations.

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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.

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