By: Dividend Sensei
High-yield blue-chips can be just the ticket to a prosperous retirement, as well as mouth-watering long-term returns. One of these companies is a beloved 7% yielding dividend aristocrat that’s been delivering incredibly dependable and generous income for 33 consecutive years. However, it’s commodity-based business model and elevated FCF payout ratio, during an out of control third wave of the pandemic makes it speculative and riskier.
In contrast, the company I’ve been buying aggressively in recent days offers the safe 7% yield, but with a much safer and well-covered dividend. Analysts expect it to grow about twice as fast as its rival, and potentially deliver 22.5% CAGR total returns over the next five years, more than 5X the S&P 500.
I just bought this very safe, fast-growing 7% yielding blue-chip twice, during its knee-jerk post-election 7% crash. I’ve even set limits to keep buying as long as this anti-bubble/Buffett style “Fat Pitch” blue-chip keeps falling despite exceptionally strong fundamentals.