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.