A Dangerous Dividend Blue-Chip You Should Ignore And A Great Alternative That's Set To Soar

A Dangerous Dividend Blue-Chip You Should Ignore And A Great Alternative That’s Set To Soar

Posted On August 6, 2020 3:44 am
By: Dividend Sensei

The most irrational bubble in US market history isn’t due to every company soaring to outlandish valuations that are completely detached from fundamentals.

Actually 44% of the S&P 500 is currently in a correction or bear market. A few extremely popular companies are generating 114% of the S&P 500’s gains this year, and the majority of companies are still red for the year.

This creates incredible risk as well as opportunity for prudent long-term investors.

In this article, I explain why one world-class blue-chip in particular is dangerously overvalued, to the point of pricing in the next seven years of growth, and thus offers -4% CAGR expected returns over the next five years.

In contrast, another fast-growing wide moat blue-chip is 35% undervalued and expected to more than triple by 2025.

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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.