2 High-Yield Blue Chip Bargains Set To Soar In 2021

Posted On December 29, 2020 3:26 am
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.

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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.