By: Dividend Sensei
The market keeps chasing rising earnings expectations higher and is now 35% overvalued. Dangerous speculative bubbles are everywhere.
But disciplined long-term investors, such as Warren Buffett, know that it’s a market of stocks, not a stock market, and blue-chip bargains are always available.
That’s the case with this 30% undervalued 11/12 Super SWAN quality high-yield, a company with dividends so dependable they haven’t been cut in at least 34 years.
This company’s blockbuster medication is expected to achieve $27 billion in 2026 sales, becoming the best-selling drug in history. But even after the 2028 patent cliff, its strong pipeline and 5% to 7% annual buyback potential make analysts believe it can grow at 9.6% over the long term.
Today this stock is one of the best Buffett blue-chip bargains you can buy, with more than 2X the market’s yield, 5X the risk-adjusted expected returns for the next five years, and 13% long-term consensus total return potential. That’s 5% more than the S&P 500 and 2.4% more than the dividend aristocrats. For anyone comfortable with the risk profile, it’s a potential 100% A+ exceptional long-term investment idea.