A Stock Market Bubble Beater That Yields 11%

A Stock Market Bubble Beater That Yields 11%

Posted On September 22, 2020 3:34 am

This normal, healthy and expected market downturn is creating incredible opportunities for both locking in exceptional long-term returns.

Specifically this anti-bubble blue-chip is trading at 7X cash flow, making it 52% historically undervalued, and priced for negative growth.

However, analysts actually expect it to grow 2% to 6% over time, and to deliver 20% CAGR total returns over the next five years, similar to returns it generated the last time it was this undervalued.

Even adjusting for the risks of things going wrong in the future, it’s likely to outperform the S&P 500 by about 4X in the coming years, making it one of the best potential ultra-yield investments conservative income investors, such as retirees, can make in this slowly deflating market bubble.

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Dividend Sensei
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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