By: Dividend Sensei
The S&P 500 is 37% historically overvalued and likely to deliver 2% to 5% annual returns over the next five years.
But numerous anti-bubble blue-chips are still available, including this 8.6% yielding blue-chip.
It’s an industry legend and one of the safest high-yields on Wall Street as well as an anti-bubble stock.
That means it’s priced for negative growth, while analysts, management, rating agencies, and bond investors all expect model growth in the future.
If it grows at 0% forever, investors will make 8.6% annual returns vs. 7.9% CAGR long-term consensus for the S&P 500.
If you can avoid being a forced seller for emotional or financial reasons, then as long as it grows 0% or faster, it’s literally impossible to lose money in this stock over the long-term.
In reality, analysts expect about 11% annual long-term returns from this company, outperforming the market by 3% annually and the dividend aristocrats by 1% annually over the next 30 years. The bond market and rating agencies expect its cash flows to remain stable for at least the next 60 years.
This blue-chip currently offers 5.7X the market’s yield, 5X the 5-year income return potential, and 4.8X the 5-year risk-adjusted expected return.
This is why I’ve bought it 39 times since April 2020 for my personal Phoenix retirement portfolio.