By: Dividend Sensei
Dividend aristocrats are beloved by income investors and for good reasons.
They are the most dependable dividend blue-chips in the world and combine several alpha factors to generate consistently market-beating returns over time. But in this market bubble, many aristocrats are incredibly overvalued, creating elevated valuation and volatility risk.
One of these aristocrats is about 50% overvalued. It may be one of the highest quality companies on earth, but buying at these prices is a potentially costly mistake you could regret for many years to come.
In contrast, this other company is a 12/12 quality Ultra SWAN hyper-growth dividend champion that’s 22% undervalued.
Analysts expect 15% to 16% CAGR long-term growth to drive about 19% CAGR total returns over the next five years, about 6X the likely returns of the S&P 500.