3 Reasons Amazon Could Quadruple Within 5 Years

Posted On June 30, 2021 6:09 am
By: Dividend Sensei

Imagine a company so wonderful, that a single share bought today, might be able to fund a rich retirement decades from now. Amazon is that company.

Amazon’s empire of businesses, including high margin AWS and advertising are expected to drive massive margin expansion leading to 33% annual free cash flow growth through 2026.

$171 billion in annual free cash flow and $628 billion in cash on the balance sheet, means that Amazon will likely be forced by institutional investors to pay dividends.

Amazon’s 17% discount to fair value, and hyper-growth through 2026, means analysts think it could deliver 290% returns, nearly quadrupling your investment in five years.

Those 26% CAGR consensus returns are what Amazon has delivered with incredible consistency for over 20 years. Combined with the potential to become the biggest dividend payer in history, Amazon is the ultimate rich retirement dream stock.

That’s why I’ve invested almost $250,000 into the best hyper-growth Ultra SWAN on earth, in all of my retirement portfolios. As long as Amazon remains undervalued, and the thesis intact, I’ll keep buying my highest conviction recommendation of all time.

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About author

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.