By: Dividend Sensei
52% of all stocks lose money over time, and 12% go to zero. While yield, growth, and value drive long-term returns, quality helps you avoid value traps.
This hyper-growth blue-chip is the 6th highest quality company on the DK 500 Master List, in the 1st percentile among all the aristocrats, kings, champions, and Ultra SWANs.
Its fortress balance sheet, profitability in the top 4% of global software companies, exceptional management, and wide moat, free cash flow minting business, make it a rich retirement dream stock.
That’s because analysts expect it to grow 17.3% annually, just as it has for the last 30 years during which it turned $1,000 into $1.2 million.
This blue-chip is 15% overvalued, but I’ve set limits to buy this legendary hyper-growth Ultra SWAN at $448 (2021 fair value) and $425 (5% margin of safety good buy). For anyone comfortable with its risk profile, buying this growth legend at fair value or better is one of the smartest long-term investment decisions you could ever make.