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3 Reasons This High-Yield Blue-Chip Could Become One Of The Best Investments Of The Next 5 Years

3 Reasons This High-Yield Blue-Chip Could Become One Of The Best Investments Of The Next 5 Years

Posted On April 9, 2019 2:23 pm
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This high-yield blue-chip offers high-risk style return potential, in a recession-proof low-risk package. And at a forward PE of just 6.7, it’s also one of the best “shark tank-like” good deals you can find on Wall Street.

Summary

  • Now that my retirement portfolio is recession ready, with zero margin and a total focus on blue-chip dividend stocks, I’m able to aggressively buy deep value stocks again.
  • Bristol-Myers is one of my favorite “fat pitch” blue-chips right now, thanks to Wall Street’s overreaction to its risks making it 25% to 28% undervalued right now.
  • Last week, I was able to open an initial position at $46.52 with plenty of cash left to keep buying if it were to fall even lower.
  • While the Celgene merger is going to be complex and result in a highly leveraged balance sheet, the new Bristol-Myers is going to become an FCF minting machine capable of delivering safe dividends and 15% to 26% long-term total returns.
  • If you’re comfortable with the risks inherent to big pharma, I consider Bristol-Myers a very strong buy today. Just make sure to size your position for good risk management (my personal limit is 5% of my portfolio).

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About author

Dividend Sensei
Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I currently write for both Seeking Alpha, Simply Safe Dividends, and DividendSensei.com 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 22 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. I'm currently on an epic quest to build a broadly diversified, high-quality, high-yield dividend growth portfolio that: 1. Pays a 5% yield 2. Offers 7% annual dividend growth 3. Pays dividends AT LEAST on a weekly, but preferably, daily basis

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