This 8% Yielding Stock Is The Ultimate Anti-Bubble Blue-Chip Bargain

This 8% Yielding Stock Is The Ultimate Anti-Bubble Blue-Chip Bargain

Posted On March 23, 2021 3:18 am

The market is full of manias, from NFTs to SPACs, meme stocks, and crypto. The S&P 500 is 37% overvalued and analysts expect 0% returns over the next three years.

But blue-chip bargains always are available, even anti-bubbles, priced for negative growth despite objectively strong fundamentals.

This 8% yielding blue-chip is priced for about -1% perpetual growth, but analysts expect 3% to 8%. Management says it can grow at 7% to 9% and it has a plausible plan to get there.

This company is 51% undervalued, trading at 8X earnings, the lowest PE in 20 years. The last time it was this cheap, investors enjoyed 25% annual total returns for the next 15 years.

I’ve been buying steadily for over a year, totaling about 1,000 shares. And I plan to keep buying for as long as this Buffet-style fat pitch opportunity persists.

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About author

Dividend Sensei
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.

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