By: Dividend Sensei
One of the wildest years in stock market history is coming to a close, with the market 42% historically overvalued. Yet blue-chip bargains for any need and risk profile are always available if you know where to look. Here are two high-yield blue-chips potentially set to soar in 2021 due to directly benefiting from 4% to 6% GDP growth and rising long-term interest rates.
One of these companies is the safest and highest quality name in its industry. It’s yielding a very safe 8.1%, that management expects to grow at 6% CAGR over time. It’s 30% undervalued and analysts think it could deliver 29% CAGR total returns through 2022 vs the S&P 500’s -3.1% CAGR.
The other is an anti-bubble blue-chip priced for approximately -2% CAGR long-term growth, but analysts expect 7.3% CAGR long-term growth driven by rising long-term interest rates. Analysts expect this industry titan to potentially deliver 30% CAGR total returns over the next two years, courtesy of being 38% undervalued.