By: Dividend Sensei
With pandemic/economic uncertainty still elevated and the market potentially set for a major correction in the coming months, a safe low volatility/high-yield portfolio might be just what retirees need. These 15 low volatility blue-chips offer a near-perfect combination of
- safe 4.7% yield
- reasonable to attractive valuations (average discount to fair value 13%)
- low volatility (nearly 50% smaller peak decline in the Great Recession)
- good long-term probability-weighted expected returns (10% vs 10% CAGR over the last 21 years vs 3.8% S&P 500)
I’ll also explain how with the right mix of bonds/cash, you can turn this low volatility/high-yield blue-chip portfolio into the ultimate sleep well at night portfolio, which fell just 10% at its peak during the Great Recession, the 2nd worst market crash in US history.