The 15 Highest Quality Blue Chips To Buy With Markets At All-Time Highs

The 15 Highest Quality Blue Chips To Buy With Markets At All-Time Highs

Posted On November 17, 2020 3:29 am

Optimism about effective vaccines coming soon has sent the market back to record highs, ending the pullback. For the rest of the year, the pandemic is expected to continue getting worse.  JPMorgan estimates a 20% to 25% probability of a double-dip recession and a 22% bear market. Fortunately, no matter how overvalued the broader market gets world-class blue-chips are always available at reasonable to attractive valuations.

Here are the 15 companies with the highest 13-year median ROC/PEG. This is a new super metric combining Joel Greenblatt’s Magic formula that beats the market with Peter Lynch’s “growth at a reasonable price” that the Dividend Kings have added to our Research Terminal.

These 15 SWANs are 20% undervalued and have delivered 13.7% CAGR total returns over the last 21 years. They yield 3.1%, have 10.6% CAGR long-term growth consensus forecasts, and 18.3% CAGR 5-year analyst return potentials, almost 6X that of the S&P 500.

We expect 13.4% risk-adjusted returns from these world-class blue-chips over the next five years. Within a diversified and prudently risk-managed portfolio, with appropriate cash/bond allocation for your needs, these 15 SWANs are some of the best blue-chips you can buy in this market bubble.

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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.

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