By: Dividend Sensei
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.