A 9% Blue-Chip That's Set To Soar And Too Cheap To Ignore

A 9% Blue-Chip That’s Set To Soar And Too Cheap To Ignore

Posted On January 20, 2021 3:43 am
By: Dividend Sensei

The strongest economic growth in 20 to 50 years and the end of the pandemic is expected to deliver one of the strongest value rallies in history in 2021. JPMorgan thinks value stocks could soar 20% to 50% this year, and many 2020 deep value blue-chips are off like a rocket in the first two weeks of the year. This 9% yielding blue-chip is up 8% YTD and 77% off its March 2020 lows. Yet the safest 9.0% yield on Wall Street is still 39% undervalued. It has 78% upside potential through the end of 2022 and represents one of the most reasonable and prudent high-yield blue-chip investments you can make for 2021 and far beyond.

Basically, this is an investment that yields almost 6X the S&P 500, with 4X the 5-year risk-adjusted expected return. Over the very long-term, analysts expect 11% to 15% CAGR total returns, vs. 8% S&P 500 and 10% dividend aristocrats. These are the kind of safe income and strong returns that rich retirements are made of.

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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.